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dunno that much about life insurance except that in general a lot of companies have a whole lot of situations in which they will not pay.

As far as I know life insurance secures your family income if you die. And as we know people use life insurance as a scam to get money. That is when it becomes unethical.

the very purpose of insurance is a transfer of risk not to insure a secure investment.

Not to mention there is even a life insurance product that pays you back all your premium dollars (term insurance) if at the end of your term tada you are alive.

Life insurance pays for the funeral arangements, accidents, mental disability....etc

Its unethical when your not disabled and you play it off as you are.. situations where you cheat the system to get money back.

A lot of people give money when someone dies as a way of helping out with expenses-Life insurance is that same idea.

Originally posted by El_NINO
Life insurance pays for the funeral arangements, accidents, mental disability....etc

Its unethical when your not disabled and you play it off as you are.. situations where you cheat the system to get money back.

life insurance if you do estate planning then can create residual income for beneficiaries as well

There's nothing wrong with life insurance, or any other insurance. However, the insurance industry is a huge joke and rips off every person that pays into it. The insurance industry needs to be controlled by the government.

Originally posted by Capt_Fantastic
There's nothing wrong with life insurance, or any other insurance. However, the insurance industry is a huge joke and rips off every person that pays into it. The insurance industry needs to be controlled by the government.


No way in hell insurance should be controlled by the govt. Generally speaking its not the insurance industry in general that rips people off its the person selling the product that needs to be kept in check.

Life insurance is very very good for me.....

I think the government can't take what they call the death tax..If it's put in a trust, or living trust...I think.

Originally posted by debbiejo
Life insurance is very very good for me.....

I think the government can't take what they call the death tax..If it's put in a trust, or living trust...I think.


kinda sorta maybe

Also its not like everyone can just run out and get a million dollar life policy it just won't happen trust me its pretty tough.

Originally posted by soleran30
No way in hell insurance should be controlled by the govt. Generally speaking its not the insurance industry in general that rips people off its the person selling the product that needs to be kept in check.

But, the company doesn't "control itself". That's the problem. Right now, the government is just as corupt as the insurance indusrty. And the insurance indusrty DOES screw people. I hate to bring up a movie like The Incredibles, but the hero guys job is actually a pretty fair assesment of the insurance industry.

If we had a government that was AT ALL of the people, by the people and for the people...then it should regulate the insurance industry.

Originally posted by Capt_Fantastic
But, the company doesn't "control itself". That's the problem. Right now, the government is just as corupt as the insurance indusrty. And the insurance indusrty DOES screw people. I hate to bring up a movie like The Incredibles, but the hero guys job is actually a pretty fair assesment of the insurance industry.

If we had a government that was AT ALL of the people, by the people and for the people...then it should regulate the insurance industry.


Sure the insurance company screws people.......but just like any big industry the worst is illustrated first hence its so easy to shake a stick at it. The Govt has put so many controls on insurance its insane however because there are no "universal" rules insurance runs rampant through loop holes in a corrupt govt system

i think its a good idea, giving people money to help them through their grief, people dont realise how much funerals cost, its pretty bloody expensive

You pay a certain amount of money a year when you make an insurance policy. You make the policy for so many years and you pay the same amount each year. The amounts may differentiate depending on your income.

The Interest rate of Insurance companies is higher than the bank. The Isnurance company invests your money, but it doesnt tell you in what. It can be loans and investments.

At the end of your policy, if you are still alive (depending on the amount of years you made it for) you get all the money you gave the insurance company + interest.

The drawback i see in this is that the value of the money you were paying over those years will obviously depreciate due to the cost of living ; meaning that if you paid 1000 a year for 20 years at a 6%, you would get your 20,000 + 1,200 interest which will total 21,200.

Insurance policies are mostly done as a savings 'just in case anything happens' account.

If say you fail to continue those payments in any part of the Insurance time-frame, be it at year 5 or year 18, you dont get any of the interest accrued. These things may vary from company to company.

So if you die in that time-frame, your family will be able to find an amount of money that may sustain them for a certain period after your death, since the family income would have been cut short.

Originally posted by soleran30
Sure the insurance company screws people.......but just like any big industry the worst is illustrated first hence its so easy to shake a stick at it. The Govt has put so many controls on insurance its insane however because there are no "universal" rules insurance runs rampant through loop holes in a corrupt govt system


How many companies have the privelege of governments telling you, you have to be a party to their operation?


There is no "universal"

I dont think its unethical, because you're just preparing for an avoidable circumstances that may occur in the future!

Cell Phones

If you waste your time in life with these silly questions, you'll loose out.

Originally posted by Capt_Fantastic
How many companies have the privelege of governments telling you, you have to be a party to their operation?


There is no "universal"


As I said before thats why the Govt shouldn't run it AT all. Govt's running operations like this eventually lead to a socialistic economy..........the govt already lead so many other things that people complain about OH I can see them really coming in and making sure everyone is well taken care of...........after they get enough kick backs.

people want to financially secure their loved ones... how is that a bad thing?

It involves the same ethical choices as any type of insurance.

If people are going to take out a policy for someone and then kill them, I hardly think we need to blame the insurance industry.

I actually have a insurance business and we do sell life insurance products. To answer some questions.. in most cases you cannot purchase life insurance on someone else without them signing the papers also! Parents can do this for their children under the age of 15 but there are very few other cases in which you can boy some without signatures. As for buying insurance for a child.. this is a good idea for 2 main reason.. the first of which is funeral costs... pick up any newspaper children unfortunately die every day as do adults... the average funeral costs around $8000-10,000! The other reason is to gaurantee furture insure abilility,meaning if they have a policy inforce while they are children and get sick/disabled later in life they will still qualify for life insurance. Some people can be uninsurable.... diabetes, heart problems,etc can make it very difficult for a person to get coverage!
So bottom line to me... Life insurance is a very necessary thing.. just imagine a world without it! Someone hits your car...so what you pay for it... your house burns down, so what...you pay for it and so on.

To the guy saying that all insurance companies , "screw" people over and dont pay anything! THe insurance industry is a HIGHLY regulated business,each state has an Insurance Dept that DOES NOT allow companies to just say , "we arent paying your claim" it has to be a valid reason(something clearly written into the policy) for a claim to be denied!! Trust me my company/office pays out hundreds of thousands in claims every year.... why just alone from the hurricanes in Louisanna and Miss. we have paid out around 81 million !!