[radioman]

Originally Posted by nsx042003

the only time I see insurance being a good thing is accidental death.

Thats where the products where you pay for a set number of years, say 15, and then the death benefit increases over time comes into play. For example;

45 year old male paying $10,000 a year for a 15 pay whole life plan. Total of $100,000.

If the dividend stays where it is at for the clients lifetime (it will go down or up over time) the payout will grow from year 1 = $164,000 to year 85 (life expenctancy) $631,056. Tax free. You can run a comparison with an alternate investment. You're giving up liquidity with the insurance option but there are ways to access the money in it.

Like I said these values are not guaranteed but based on the dividends performance. It is however guaranteed to be at least the benefit amount in year 1 of $164,000.

Originally Posted by nsx042003

here's what I'm not very clear on, does the payout at the end equal to what's being put in? if not why would I want such a thing? I guess unless I accidentally died, then yes insurance helps. I guess it would also make sense if you have dependents, because ultimately that's what insurance is for...to protect the ones financially unable.

The first part touchs on your question or where you said you were a little unclear. Plans that don't pay a dividend and are paid throughout your life don't look as good. The internal rate of return is somewhere around 3-5% at life expectancy. Like you said, its for that accidental death at age 50 that it really gives you more than what you're putting in.

Then there are the Term 10 and 20 etc plans that are designed for short needs like mortgages or key man insurance for a business. These policies generally lapse or the client no longer needs them before a claim gets submitted. Thats why the cost is incredibly low.

I'd say if you have no dependents, what's the point? for all it matters, I guess whoever wants to hold onto your belonging after you die should be the one buying insurance, it's sort of like buying a lottery ticket. (that sounded bad but that's how I see it)

You're pretty spot on here. For single people with no dependents living benefit products are where you should be concentrating on. Criticial Illness, Disability etc. Cover your own in case something happens.