No. Term life is bought to protect you incase you die. you go into the contract knowing you are buying a period of protection, and there is no pay out if you out live it.

Whole Life is sold as an investment. The death benefit is expected to happen; if it wasn't, no way would people buy the hugely more expensive Whole Life compared to Term Life.

Readers, I am interested in a person with good knowledge of statistics to look at the numbers and graph in the link I provided to see if I am right about 80% of policy holders never seeing the death benefit.
I am not interested in your opinion on whether relapse rates should affect my thinking about my projected returns. I know relapse rates are relevant. They speak on my chance to see a death benefit.

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Posted by RebelOP

Misty Mountain Top

Member since Jun 2013

12478 posts

Posted on 1/26/14 at 7:34 pm to Stingray

It's not about analyzing the statistics that's why there are those ratios because they already have the numbers/statistics to back up the ratio. You need to understand what the ratios mean. You're also looking at 2003, 04 numbers. That's over ten years ago now. And no where does it even backup your 80% number.

The reason why people are staying away from this thread is because you can't seem to get through your head....Lapse ratio and rate of return don't have anything to do with each other.

Whole life is not sold as an investment because that would be illegal.

This post was edited on 1/26/14 at 7:36 pm

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Posted by GoCrazyAuburn

Member since Feb 2010

34912 posts

Posted on 1/26/14 at 7:37 pm to Stingray

quote:
No. Term life is bought to protect you incase you die. you go into the contract knowing you are buying a period of protection, and there is no pay out if you out live it.

Then, it isn't good protection as it has a higher lapse rate than WL. Therefore, by your logic, it shouldn't be bought.

quote:
Whole Life is sold as an investment. The death benefit is expected to happen; if it wasn't, no way would people buy the hugely more expensive Whole Life compared to Term Life.

1. Selling it as an investment is illegal.
2. You are assuming the death benefit is the "investment" part of the WL. This is not true. That is the cash value.

quote:
They speak on my chance to see a death benefit.

Your chance of seeing a death benefit is unchanged unless the reason for the lapse is universal throughout, and involves a problem that everyone has regardless of situation.

This post was edited on 1/26/14 at 7:42 pm

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