fuzzygobo
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Insurance is a wonderful scam. Besides medical insurance, here's a little taste of how life insurance works.
Companies try to sell whole life policies (as sincere as Alex Trebek looks in those Colonial Penn ads, these policies are a ripoff).
Many of these policies build "cash value" over time that you can borrow against. The interest rate the cash value builds at is so abysmally low you're better off with a savings account at the bank.
Suppose you have a $50,000 policy, and after twenty years you build up a thousand bucks in cash value. If you want any of that thousand, it's like a loan YOU HAVE TO PAY BACK! If you don't pay it back, they cancel your policy.
What a racket!
There's a different policy called term insurance, which doesn't have cash value, and is so much cheaper. But agents don't like selling it (or letting you know it exists) because they don't get as big a commission.
But it's nice to know with the money insurance companies rake in, they can buy a football stadium or two.
Companies try to sell whole life policies (as sincere as Alex Trebek looks in those Colonial Penn ads, these policies are a ripoff).
Many of these policies build "cash value" over time that you can borrow against. The interest rate the cash value builds at is so abysmally low you're better off with a savings account at the bank.
Suppose you have a $50,000 policy, and after twenty years you build up a thousand bucks in cash value. If you want any of that thousand, it's like a loan YOU HAVE TO PAY BACK! If you don't pay it back, they cancel your policy.
What a racket!
There's a different policy called term insurance, which doesn't have cash value, and is so much cheaper. But agents don't like selling it (or letting you know it exists) because they don't get as big a commission.
But it's nice to know with the money insurance companies rake in, they can buy a football stadium or two.