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What the Life Insurance Companies Don’t Want You to Know

Want to learn the secrets of buying life insurance and winning the game?

By Byron Udell | February 21, 2018

Need life insurance, but afraid you might end up paying too much? Learn the secrets insurers don’t want you to know when you’re buying life insurance.

Did you know that 41 percent of Americans DON’T have ANY life insurance? At AccuQuote, we think that’s troubling. We think every American should have coverage. Every family should be protected with affordable life insurance.

So why is only 59 percent of the country covered? After all, life insurance is incredibly affordable right now. In fact, Term Life Insurance cost less than half of what it did just 20 years ago. There are actually a myriad of reasons, including the fact that many people simply don’t care about what happens to anyone after they die. Fact is, most people DO have folks they care about…yet they haven’t yet gotten around to buying life insurance.

If you’re even thinking about getting some, you’ll want to know how to win the game…and yes…it IS a game.

In case you didn’t know, life insurance companies make a lot of money. In 2016, the industry earned $115 billion! And they made all that money because THEY WIN the “game” of life insurance most of the time.

Why do I call it a “game”? Because that’s what it is. It’s a financial game. And like in most games, there are winners…and losers.

How do insurance companies WIN the game?

Let’s say you bought a 20-year term life insurance policy at age 40 with an annual premium of $892, which you faithfully paid on time for the entire life of the policy. So then at age 60, the insurance company decides to jack up your premium to over $20,000 a year!

At that point, most people would drop the policy, leaving them with no coverage at all. Again, the insurance company wins…and you lose. After all, they’ve collected nearly $18,000 from you…and they didn’t have to pay out any claim. Clearly, another win-win for the insurance company.

Or, let’s say you bought a permanent life insurance policy at age 45, with an annual premium of $8,000. And let’s say…10 years later…you get divorced or some other major lifestyle change occurs that prompts you to get rid of that policy. Now let’s do the math. That’s $8,000 times 10 years…for a total of $80,000. That is how much the insurance company gets to keep…$80,000 of your money. And you get nothing (or next to nothing)! But your policy was pretty profitable…for the insurance company!

How to WIN the game of life insurance

If you want to know how to win the “game” of life insurance, all you have to do is remember these six little words: Die with your policy in force.

It’s the people who buy and then drop their policies prior to dying that subsidizes the policyholders who were smart enough to die with their life insurance in force. “In force” means that your policy is active, with your premiums paid-in-full, and up-to-date at time of your death.

Remember, the odds that you are going to someday die…is 1 out of 1. There’s nothing any of us can do about that. But we can protect the people we leave behind.

So now I’m going to tell you how you can actually WIN the game of life insurance.

Let’s look at the math. Say you buy a $1 million Permanent Life policy at age 55…with premiums of $13,000 a year. If you live to your life expectancy of age 85…you would’ve made 30 payments of $13,000…totaling $390,000. But when you DIE…your family gets a guaranteed $1 million check…tax-free…for a net gain of $610,000!

The numbers just don’t LIE. That’s a tax-free rate of return of about 6 percent! Which is equivalent to earning well over 10 percent on a taxable investment (maybe even more, depending on your tax bracket).

Or take a woman, age 43…with a $500,000 permanent life policy…paying premiums of $2,500 a year. At age 8643 years later…she would’ve paid $107,500 in premiums. And if she died the same year at age 86…her family would receive $500,000 tax-free. That’s a net gain of $392,500!

Now that’s a ridiculously high rate of return…that simply cannot be matched by any other safe, predictable financial instrument.

So how does that “winning” formula work for the insurance industry?

Well, like I said before…it doesn’t. At least NOT on the people who die with their policies in force. The insurance companies make their money on the folks who CANCEL their policies before they die.

THEY SUBSIDIZE the returns for those smart enough to die with their policies in force.

And that’s what life insurance companies won’t tell you…and DON’T want you to know!

Again, when they win…you lose. Conversely, when you win…they lose. This is not a hard concept, right? But, sadly, there’s a lot of people out there who just aren’t taking advantage of this “winning” strategy.

Rich people get it

Wealthy people figured out this “winning” strategy a long time ago. For years, they’ve always been the ones buying the biggest policies. Why? Because rich people are usually pretty good with math. They’ve crunched the numbers and know that life insurance delivers some of the best returns on investment and is one of the safest financial instruments you can buy…period.

Financial advisors always tell their clients to diversify their portfolios. And life insurance should be a part of every financial portfolio. A life policy that’s in force absolutely crushes every other financial instrument on the planet, especially when you die before your time. But even when you die at or around your life expectancy, you still win…big. The only way to lose is to drop the policy before you die!

For more insights on “Winning the Game of Life Insurance,” watch this video below.

If you want to learn more about “winning the game” and buying life insurance, talk to us. For over 30 years, AccuQuote has helped hundreds of thousands of customers save money and acquire over $100 billion in life insurance coverage. And we only represent the top-rated, name-brand insurance companies you know and trust.

We’re easy to reach. Call us today at 1-800-442-9899 or visit our website at www.accuquote.com.

We only work with highly rated insurance companies – brand names you trust. You may be able to save money without sacrificing quality and strength.