Life Insurance SCAM

[T Chase]

Few people realize that almost everybody who buys life insurance gets ripped off because brokers/financial advisors don't tell clients that they already HAVE a great life insurance policy under Social Security. As a result, most everybody buys significantly more life insurance than they want or need. Did your broker tell you about SS's significant life insurance benefits???

[sweeps]

Social security is definitely a starting point, and is probably all that a poor family can get. But if you can afford it, you should buy term life insurance for additional protection.

Brokers and financial advisors definitely rip people off by selling you whole/universal life insurance. No argument there.

[rob62521]

I just cashed out a whole life policy for a whopping $1000 my mom started when I was a baby 46 years ago. I've been paying the premiums for the past 30 years and I called and asked what it was worth. It was worth exactly what had been paid in for the past 46 years. No interest and it wasn't $1000. I cashed the puppy out and put the money in my Roth.

[disneysteve]

Originally Posted by T Chase

Few people realize that almost everybody who buys life insurance gets ripped off because brokers/financial advisors don't tell clients that they already HAVE a great life insurance policy under Social Security. As a result, most everybody buys significantly more life insurance than they want or need. Did your broker tell you about SS's significant life insurance benefits???

I don't believe the SS benefit would be anywhere near as large as the insurance policy I carry. It might provide enough to cover the basics but it certainly wouldn't cover my daughter's college costs or give my wife enough to pay off the mortgage and maintain our current lifestyle.

I'll have to check the last SS statement I got when I'm home to see the estimated benefits.