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Picture of Rick Lee
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You need to shop around and about once every year or two. I got a new bike a few yrs ago and, while it was about the same HP and features as my previous one, my premium quadrupled. I shopped around and got back to where I had been before.

I do final expense life insurance. Actuaries do not at all decide how much one's life is worth. They figure out how much a company needs to charge based on age and health to collect over an insured's life expectancy to be profitable. That's all there is to it. If you make $10k per year on SS disability, live in Section 8 housing , are on Medicaid with low income subsidy and are on food stamps, you really don't need a $500k whole life policy. But if that's what you want and you can afford it, someone out there will write it for you.
 
Posts: 2634 | Location: Cave Creek, AZ | Registered: October 24, 2005Reply With QuoteReport This Post
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I shop around every three years, two years ago when we bought a new Lincoln for Mrs. CP the insurance was cheaper than the car we traded in.
 
Posts: 233 | Location: Kansas | Registered: August 28, 2020Reply With QuoteReport This Post
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Picture of iron chef
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quote:
Originally posted by Rick Lee:
I do final expense life insurance. Actuaries do not at all decide how much one's life is worth. They figure out how much a company needs to charge based on age and health to collect over an insured's life expectancy to be profitable. That's all there is to it. If you make $10k per year on SS disability, live in Section 8 housing , are on Medicaid with low income subsidy and are on food stamps, you really don't need a $500k whole life policy. But if that's what you want and you can afford it, someone out there will write it for you.

When I met w/ some agents to discuss life insurance, they insisted on a financial statement of my income & assets and credit report. I made the same point you did. What difference does it make if I make $50K or $500K per year as long as I pay the premium you set? And how is my credit score relevant? I'm not asking to borrow money. What is the risk in insuring someone w/ low vs high credit? Either way, if they fail to pay their premium, you cancel their policy. What is the risk on the insurers part of insuring someone w/ low or no credit?

Perhaps I didn't shop around enough, but the way the agents explained to me was that someone w/ greater income & assets has more to live for; therefore, his life is worth more in dollar value. Also, it's assumed the more affluent you are, the better health care you can afford.
 
Posts: 2626 | Location: Texas | Registered: June 17, 2003Reply With QuoteReport This Post
Staring back
from the abyss
Picture of Gustofer
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quote:
Originally posted by SevenPlusOne:
It's an "industry" that literally produces nothing.
It produces peace of mind which, while intangible, is worth a pretty penny to some.


________________________________________________________
Posterity! You will never know, how much it cost the present Generation, to preserve your Freedom! - I hope you will make a good use of it. - if you do not, I shall repent in Heaven, that I ever took half the Pains to preserve it. - John Adams
 
Posts: 17634 | Location: Montana | Registered: November 01, 2010Reply With QuoteReport This Post
I Deal In Lead
Picture of Flash-LB
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quote:
Originally posted by Gustofer:
quote:
Originally posted by SevenPlusOne:
It's an "industry" that literally produces nothing.
It produces peace of mind which, while intangible, is worth a pretty penny to some.


It produces peace of mind for a huge amount of people. Just looking at all the "CCW Insurance" companies that have popped up in the last decade or so will verify that, just as "extended warranties" and "No BS warranties" do.
 
Posts: 8993 | Location: Gilbert Arizona | Registered: March 21, 2013Reply With QuoteReport This Post
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Picture of Rick Lee
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quote:
Originally posted by iron chef:

When I met w/ some agents to discuss life insurance, they insisted on a financial statement of my income & assets and credit report. I made the same point you did. What difference does it make if I make $50K or $500K per year as long as I pay the premium you set? And how is my credit score relevant? I'm not asking to borrow money. What is the risk in insuring someone w/ low vs high credit? Either way, if they fail to pay their premium, you cancel their policy. What is the risk on the insurers part of insuring someone w/ low or no credit?

Perhaps I didn't shop around enough, but the way the agents explained to me was that someone w/ greater income & assets has more to live for; therefore, his life is worth more in dollar value. Also, it's assumed the more affluent you are, the better health care you can afford.


Depends on how much you want. Life insurance is a notorious vehicle for money laundering. So people with low income who want or think they need and somehow can afford big policies are a red flag. So if you want $500k whole life for $600/mo and make $15k/year or, worse, you can write a check for a $350k single premium, well, that's a huge red flag and agents have to report it.

Money laundering doesn't really happen in final expense because the dollar amounts are just too low. It'd be like counterfeiting $1 and $5 bills. I suppose, if you're looking at larger face amounts, the agent could also be probing for info to see if you're a good prospect for other financial products.
 
Posts: 2634 | Location: Cave Creek, AZ | Registered: October 24, 2005Reply With QuoteReport This Post
Staring back
from the abyss
Picture of Gustofer
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This is why your insurance rates are so high. Ridiculous. I hope GEICO appeals.

https://www.msn.com/en-us/news...2-million/ar-AAYcmV3

KANSAS CITY, Mo. — The Missouri Court of Appeals has affirmed that an insurance company must pay a $5.2 million settlement granted to a Jackson County woman who claimed she unwittingly caught a sexually transmitted disease from her former romantic partner in his car.

In an opinion issued Tuesday, a three-judge panel found that the judgment entered against GEICO General Insurance Company through earlier arbitration proceedings was valid. The insurance companies sought to undo the action, claiming errors were made in Jackson County Circuit Court and the settlement agreement was not done in line with Missouri law.

According to court papers, the woman, identified in court records only as M.O., notified GEICO in February 2021 of her intention to seek monetary damages, alleging she contracted HPV, the human papillomavirus, from an insured member in his automobile. She contended the man caused her to be infected with the STD despite being aware of his condition and the risks of unprotected sex.

The insurance company declined the settlement, sending the case to arbitration.

In May 2021, the arbitrator found that the man and woman had sex inside his vehicle that “directly caused, or directly contributed to cause” the HPV infection. The man was found liable for not disclosing his infection status and the woman was awarded $5.2 million for damages and injuries to be paid by GEICO.

The insurance company filed motions seeking a new hearing of the evidence and for the award to be tossed out, saying the judgment violated the company’s rights to due process and the arbitration agreement was unenforceable. The company appealed after those requests were denied.

The three-judge panel tasked with reviewing the case found that the lower court did not make a mistake by denying the company’s motions, saying GEICO did not have a right to “relitigate those issues” once damages had been determined and a judgment was entered.

Judge Tom Chapman concurred in a separate opinion, though, saying he believes GEICO was offered “no meaningful opportunity to participate” in the lawsuit and existing law “relegat(es) the insurer to the status of a bystander.”


________________________________________________________
Posterity! You will never know, how much it cost the present Generation, to preserve your Freedom! - I hope you will make a good use of it. - if you do not, I shall repent in Heaven, that I ever took half the Pains to preserve it. - John Adams
 
Posts: 17634 | Location: Montana | Registered: November 01, 2010Reply With QuoteReport This Post
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