BMS wrote:
- quote -


ALL Term Insurance is "leased insurance". The name of the
policy identifies that, in that it can only be "in-force" for a
specific "TERM".
Wheras Whole Life contracts WILL remain in-force as long
as you live (provided premiums are paid.)


- quote -


Statisticaly, LESS THAN THREE PERCENT OF ALL DEATH CLAIMS
are paid on In-Force Term policies. Conversly, MORE than 97% of
ALL Death Claims are paid on some form of in-force Permanent Policy.

Cal Lester CLU

- quote -

Think of it as leasing insurance instead of buying it.

Given that most term insurance goes without every being claimed against it,
the risk is low for the company. You pay them extra to get a dollar you paid
them today, back in say 20 years.


"LavaDude" <mikioi[at]TAKEOUTgte.net> wrote in message
news:Xns96608980F9A45mikioigtenet[at]216.168.3.44...
- quote -

Thanks Cal ...
I had a feeling that she might be overpaying... Just needed confirmation...
LavaDude...

Hey Dude;
That is like asking the fat lady at the circus to receite the "Old Testament" while riding on a
bicycle....
However, I will try.

LavaDude wrote:
- quote -


You are describing a "hybrid" of the Term Insurance contract. The contract
contains a "rider", for which there is an EXTRA hefty FEE added to the
basic premium. This EXTRA fee is then placed in a seperate account
(owned by the company) to earn sufficient interest, that will generate an
amount equal to the GROSS premiums paid.
However there are a number of "hooks" involved:

a) generaly, that amount is only payable at the END of the contract,
so if you NEEDED any cash in say 9 years, you could NOT get it.
b) If you DIE durring the life of the contract, your beneficiary would
receive ONLY the Death Benefit, NOT the extra fund.
c) if you SURRENDER the contract, for whatever reason, PRIOR
to the COMPLETION of the contract, you LOSE that fund.

Since we have over 2,000 companies offering Life Contracts, there
will be many variations of what I have described, however please keep
in mind, that for every benefit they GIVE YOU pay EXTRA.




- quote -


I have given you a brief explanation of how it works, and hopefully you can
see how the company makes a "BUNDLE" of money on these contracts.

IMHO, it is NOT a good deal. There are far better contracts available, that
will offer you an opportunity to REGAIN some or all of you premiums (while alive).
Cal Lester CLU


- quote -

Hi All...

A friend of mine has a policy where the premiums paid are refunded at the
end of the term if she doesn't use the insurance (meaning die during the
term) ...

Can someone please give me a brief explanation of how these policies work?
How can an insurance company make money? Is it a good deal? ... What's
the catch?

Thanks!

LavaDude