Re: Life Insurance = Good Investment

[jehargro]

Misleading

 

[insuranceexec]

It is not an investment but a way to bring back asset to it's original form.
- - - - - - - - - - - - - - - - - -

That's true but u can equally check on this too.
- - - - - - - - - - - - - - - - - -

If misled, clean your eyes and come forward, because brand new style of in insurance is right before you now

I love the payday loan application on your site.

Is that your version of premium financing?........

 

[xrac]

The Truth About Whole Life.

www.assurity.com/Pdfs/Miller-WholeLife.pdf

 

[TEXAS PITBULL]

Interesting read!

 

[seeknulfind]

Since I don't want any legal problems with the powers that be, I'll put it this way - does insurance have "investment attributes"? Let's see...

By my understanding of the law, I must qualify any "savings' language by informing prospects and clients that any cash value is not FDIC insured. The implication is it is possible that principle can be lost. Indeed this possibility does exist.

Brandon Roberts (BTNRS) was "caught" admitting that an IUL can lose principle. (on a video in the BA section while interviewed with Steve Savant.)

So I can only concluded that it is possible to lose principle and risk of loss is integral to the definition of an "investment".

What about gain? Well, one needs to look no further than the Miller article offered by xrac above. As the years go by, this policy returns more than was originally put in, thus establishing a potential for gain. Yet another attribute of an investment.

So is life insurance an "investment"? How can it be? The law says "no". I'm good with that.

It's life insurance. It carries a miniscule potential for loss and a fairly strong possibility for gain IF the policy is designed correctly.

Really, when I think about it, I don't WANT life insurance to be categorized as an investment as doing so would open up a very ugly can of worms.

Andy

 

[DHK]

First, this is an old thread.

Second, you need to re-classify the term "investment" according to the dictionary and then talk about SECURITIES.

Life Insurance IS an 'investment' in your family and future well-being. It's just not a security (unless you're talking about variable life).

Gee whiz.

 

[BNTRS]

Brandon Roberts (BTNRS) was "caught" admitting that an IUL can lose principle. (on a video in the BA section while interviewed with Steve Savant.)

Caught in the act?

Sort of suggests that I've made allusions suggesting this doesn't happen. I'm not sure we can say that's true.

Though I do know of a few ways to significantly prevent the risk, even in products with a 0% floor.

 

[winnersgetdinners]

If im not mistaken, its actually illegal to call life insurance and or annuities investments when speaking professionally.

 

[Norwayguy]

If im not mistaken, its actually illegal to call life insurance and or annuities investments when speaking professionally.

Unless they are VUL or Variable Annuities.

 

[DHK]

If im not mistaken, its actually illegal to call life insurance and or annuities investments when speaking professionally.

I think it should be illegal to sell anything without a proper knowledge of the words used in a language.


What is the definition of an "investment"? per dictionary.com:
in·vest·ment

/ɪnˈvɛst

mənt/ http://dictionary.reference.com/help/luna/IPA_pron_key.htmlShow Spelled [in-vest-muh

nt] http://dictionary.reference.com/help/luna/Spell_pron_key.htmlShow IPA
noun 1. the investing of money or capital in order to gain profitable returns, as interest, income, or appreciation in value.
2. a particular instance or mode of investing.
3. a thing invested in, as a business, a quantity of shares of stock, etc.
4. something that is invested; sum invested.

Why do people buy LIFE INSURANCE? Because they are trading premiums for promises.

What promises?
- Death benefits - would you rather have $1,000/year or a $1 million promise?
- Guaranteed cash values that grow at a specific interest rate & can earn dividends (not guaranteed). Sounds like definition #1 to me!

What is are SECURITIES? Per dictionary.com

se·cu·ri·ty

/sɪˈkyʊər

ɪ

ti/ http://dictionary.reference.com/help/luna/IPA_pron_key.htmlShow Spelled [si-kyoo

r-i-tee] http://dictionary.reference.com/help/luna/Spell_pron_key.htmlShow IPA noun, plural se·cu·ri·ties, adjective noun 1. freedom from danger, risk, etc.; safety.
2. freedom from care, anxiety, or doubt; well-founded confidence.
3. something that secures or makes safe; protection; defense.
4. freedom from financial cares or from want: The insurance policy gave the family security.
5. precautions taken to guard against crime, attack, sabotage, espionage, etc.: The senator claimed security was lax and potential enemies know our plans.
6. a department or organization responsible for protection or safety: He called security when he spotted the intruder.
7. protection or precautions taken against escape; custody: The dangerous criminal was placed under maximum security.
8. an assurance; guarantee.
9. Law. a. something given or deposited as surety for the fulfillment of a promise or an obligation, the payment of a debt, etc.
b. one who becomes surety for another.


10. an evidence of debt or of property, as a bond or a certificate of stock.
11. Usually, securities. stocks and bonds.
12. Archaic. overconfidence; cockiness.

To separate FIXED insurance from VARIABLE insurance, it's best to use #10 & #11 when talking about SECURITIES.


It's ALL an 'investment'... but not everything is a 'security'.