Christian view on Life insurance, do or don’t

Let's consider giving the meaning of both term and whole life insurance so that someone can arrive at an informed decision.

What is Term Insurance? https://www.investopedia.com/ask/answers/08/term-life-insurance.asp


What is Whole Life Insurance? https://www.investopedia.com/terms/w/wholelife.asp

I would say insurance in general is nothing more than a scam.
Your giving your money to some guy in an office every month and then there is no guarantee they will give it back. I mean why consider insurance when you can just buy a safe and store your savings in that?

Why would you trust someone else with your money?

Best to learn about insurance before making such silly remarks as, there is no guarantee they will give it back.

For those considering insurance, please consider ignoring the poor advice from I_am_Canadian. Because they_B_silly!
And please don't ever consider putting your money in a safe so that cash can be accessed for your final expenses, burial, cremation, when you're dead. First, you have to trust someone with the combination. Secondly, there is no contract that guarantees they'll abide by your wishes. And third, what if that only person with the combination ends up dying before the safe can be opened?

A life insurance policy is a contract! Between you and the issuer, the insurance company. As long as you keep up your premiums your contract is secure. When you pass on, all those that you have named as your beneficiaries of that contract/insurance policy, are paid. You can even have a policy exclusively for burial expenses. Those are known as Burial Insurance policy.

This Google link gives you many options to review at leisure. Including that which tells you the difference between Burial policy and life insurance policy.



Now, you can open a savings account that accrues interest. And you can have drawn up a "revocable trust", that has a trustee you literally trust with your life appointed to oversee it. And that savings account can be used for your burial/cremation expenses. However, that can take time. Whereas a funeral parlor will abide by the wishes of the decedent and their representative/family, when they know a policy is in place. And the great thing is, if the insurance company drags its feet, the companies I recommended do not do this, but some do, the funeral parlor has all the resources available to guide you as to how to get that life insurance company to pay out.

Ok so what is the difference between insurance and a ponzi scam?
https://en.wikipedia.org/wiki/Ponzi_scheme

The difference? Ponzi Scheme's are illegal.
Please make use of the information links provided to help you understand.

Insurance is a fund that provides capital to cover the amount of liabilities it generates by issuing policies. It in turn uses the premium paid by policy holders to invest in stocks or other forms of interesting bearing notes. So theoretically, if all the policy holders died then the insurance underwriter should have the necessary funds to cover to the policies.

A ponzi scheme is where there is not sufficient capital available at the offset to settle the claims of the policy holders but requires the sales of additional policies to cover existing policies. Therefore, it can never realistically cover its liability.

It certainty seems that way sometimes, especially when they sell you a home owners policy which doesn't become in effect until the property passes the insurer's inspection required for insurability. Yet they issue the policy and begin billing you before the 'required' inspection and only learn of the specifics of the inspection requirement when the inspection is later scheduled.

So what good does to tell the inspector of the defect since they don't tell the insurer that the property didn't pass inspection. So the insurer continues to bill you for the monthly premiums for the insurance you don't have because they have not been notified by their inspector contracted by the insurer that it did not pass inspection. (Although they know it hadn't passed the required inspection)

So before you know it, you're on the hook for three or four months premiums for the home owners insurance policy which wouldn't have covered any claim on your property since it only become in force once the property passed inspection.

Wouldn't you agree that taking the off ramp to complain about home owners insurance is unfair to the OP that asks about life insurance?

Yes, you're right I should have stayed on topic.

I did sign up for life insurance once, it was shortly after a guy launched a rocket at me, needless to say a few months later I came to my senses when I wasn't as stressed, I asked for a refund and A.I.G. still to this day has not sent it. That was about 10 -12 years ago.

So I stand by my statement that insurance is just a scam.

If you have any responsibilities such as wife, children, mortgage, car or credit card payments then you should take out life insurance. There is nothing worse than loosing a loved one then add to that no way to pay for the responsibilities accumulated and leave the spouse or children with the burden to try and pay for it with no income to do it.

Yes, take out the life insurance it is the responsible thing to do to safeguard your family from struggles and debt. They will already be devastated that you are gone.

You don't drive then?

Why would A.I.G refund you when you used their product under contract and agreed with your signature to the terms.
Read anything you're asked to sign. It isn't a scam because someone just signs without thinking what they're committing themselves to.

Nope, never got my drivers license.
Personally though, I am a better driver with out a license than most people are with one.
The whole thing is a scam to keep poor people relying on the government.

I have been trained to operate heavy equipment, certified to operate a forklift, reach truck, bulldozer, excavator, road grader, and back hoe. I've also had the oppertunity to drive a shunt truck once, and a 10 tonne articulating rock truck.

I have also read the MTO hand book, I have the practical experience and knowledge, I just don't have the $158.00 to waste on A G1 package. ODSP wiil not cover it. But they will cover other courses up to $500.00 Naturally, I am thinking that The Provence of Ontario, is nothing more than a lost cause.

Dave Ramsey recommends term life

who is Dave Ramsy?

A famous Christian financial guru.

https://www.daveramsey.com/new-to-dave?snid=footer.getstarted.newtodave

Ah, thanks for clairifying.

Self insuring is the best way to go....
Especially through a trust.
A trust is in itself a legal entity governed by you or designated people after your incapacitated. Especially if you have more than $600,000 in assets. Because any more than that and the government begins taking it.

And it's easy to lose your family's assets to government taxes....a house, an IRA, and a life insurance policy together often break that barrier....and even though you have provided for your family the government takes it all.

There are things much worse than dying young...and the "dog days of retirement" can become a reality simply by losing a spouse.
(Dog days of retirement is when you have to eat dog food because you are too poor to buy real food)

But for most people....(usually most who play on the internet) a simple will (purchased in kit form off the internet) is sufficient for their meager possessions. But if you have debts...you definitely want those covered by a policy. And the older you get the more expensive a policy becomes. (Except for shrinking coverage term policies...they shrink the payout and not the cost)

And if poor either a burial policy or prepaid funeral services is sufficient. But again...insurance is extremely expensive for those who expect to need it. They won't even sell it to you if you are sick.

diabetes and high Blood pressure together are all auto declined. Any two major illnesses are auto declined....bipolar and anything....again auto declined. (Including overweight)

So....if you feel like you shouldn't be buying green bananas....prepaid expenses is the way to go.

I would do it. It means you are taking care of your loved ones and that cannot ever be wrong.

Welcome, Mary!

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