Posted 2/12/2016 12:43 AM (GMT 0)
Insurance companies are in it for profit that's it. Medical, Auto or life.
The life insurance company sets things up so that they make money always. My Mom just died and when I read the policy I learned a lot. If you do whole life, they take your age and the amount you want coverage for and then calculate your premium based on that. They know the average life span and make sure that the whole lie policies pay for themselves.
For example, with my mom the policy was $10K and there was a 20 year payment which comes out to the premium times 240 months = $10,000. If my mother had lived 2 years longer they would have collected the entire $10,000. My parents essentially gave the insurance company their money to save and the company invested it and collected the interest themselves.
Another piece of advice that came from my cousin (an insurance agent), you really want to get a term policy. So we bought a term policy when my daughter was 2, for 20 years. It covered us until she finished college. We got another policy when my son was born. The premiums are almost half a whole life policy. We just needed to ensure we were covered until the kids finished school.
I'll also echo everyone else. The insurance company can't (I don't think) ask for your medical records. Unless you have Lyme Carditis, Lyme won't kill you it just makes you really sick. There are enough of us here that have had it for decades to show that.
When you sign underneath the paragraph that asks if the information you provided is true and accurate, sign it. Believe me insurance companies don't lose money, ever.
Kim