Protect the insurance companies PSA

[justnzane]

You obviolsy (because of your opinion) don't know how insurance works. Let's say someone gets a million dollar life policy to replace all their income that would be lost due to premature death. They make $60k per year and their spouse doesn't work. The million dollar policy would replace that $60k of income so the surviving spouse can keep the house, continue to put foood on the table, stay at home with the kids, continue to fund their future obligations, i.e their own retirement, etc, etc. Under you scenario the person dies prematurely the insurance company says "sorry, you're not getting the full million" and now we have not properly protected the surviving spouse. Your idea is very, very flawed.

 

Obviously you believe in life insurance but why were you paying for it at work and not outside of work?

Look, I understand how it works. I have opinions saying that it should be changed in some ways to accommodate the business, and some that will help make it more consumer friendly as well.

 

I get your hypothetical situation, and yes it would suck. However, again it goes back to he should have had life insurance earlier, imo.

 

Now, I have grown up dirt poor and can't afford life insurance at the moment because i have only had so few opportunities to save money as i have been in college all but one year since i was 18. I have had to live in my car for months at a time at one point. Heck, I actually had major issues when i was in college, without a life insurance policy. Now, if I actually had family that supported me and if i had passed away at that point, it would have sucked for those family members. However, when I get myself in a position to have disposable income, life insurance is a high priority. That said, even it was me and I have a family to support I firmly believe that I should only get an amount based on how long i have had such a policy.

 

To fully answer your last question, my job covered a portion of the life insurance policy. That said, I quit the job I had due to being far away from home and that I despised working where I did with certain people I had to see on a daily basis. To get a similar job back home, I am required to have my masters by 2013.

[Chef Jim]

Look, I understand how it works. I have opinions saying that it should be changed in some ways to accommodate the business, and some that will help make it more consumer friendly as well.

 

I get your hypothetical situation, and yes it would suck. However, again it goes back to he should have had life insurance earlier, imo.

Now, I have grown up dirt poor and can't afford life insurance at the moment because i have only had so few opportunities to save money as i have been in college all but one year since i was 18. I have had to live in my car for months at a time at one point. Heck, I actually had major issues when i was in college, without a life insurance policy. Now, if I actually had family that supported me and if i had passed away at that point, it would have sucked for those family members. However, when I get myself in a position to have disposable income, life insurance is a high priority. That said, even it was me and I have a family to support I firmly believe that I should only get an amount based on how long i have had such a policy.

 

To fully answer your last question, my job covered a portion of the life insurance policy. That said, I quit the job I had due to being far away from home and that I despised working where I did with certain people I had to see on a daily basis. To get a similar job back home, I am required to have my masters by 2013.

 

I have nothing to comment about anything other that what I've bolded. He should have had life insurance earlier? What the hell does that mean? Once again you're showing you have no idea how life insurance works.

[Chef Jim]

Booster....what happened to your post?? Booster....Booster?

[Booster4324]

Booster....what happened to your post?? Booster....Booster?

 

Screw you read my PM

[Chef Jim]

Screw you read my PM

 

Oh I've read your PMs. Quite entertaining stuff.

[justnzane]

I have nothing to comment about anything other that what I've bolded. He should have had life insurance earlier? What the hell does that mean? Once again you're showing you have no idea how life insurance works.

again, i get how it how it works. I think it should work a little differently. I think I have said all I can say regarding that point.

[Chef Jim]

again, i get how it how it works. I think it should work a little differently. I think I have said all I can say regarding that point.

 

And this is going around and around but I'll ask you one question and you're answer might point to the fact that you don't know how insurance works. And when I say understanding how it works that includes why people buy insurance. And that's my question. Why do most people or more to the point why should people buy insurance?

[justnzane]

And this is going around and around but I'll ask you one question and you're answer might point to the fact that you don't know how insurance works. And when I say understanding how it works that includes why people buy insurance. And that's my question. Why do most people or more to the point why should people buy insurance?

of course to protect your family long term should you pass, with a bit of monetary security. i get that. again, i still think what i have expressed.

[Chef Jim]

of course to protect your family long term should you pass, with a bit of monetary security. i get that. again, i still think what i have expressed.

 

Should you pass? I hate to break it to you, we're all going to pass.

 

But here's the thing, you don't know when that time will come and we all have certain obligations and debts that need to be covered. And a good plan will calculate how much coverage you need in order to cover those current and future obligations, whether it's income, debt, estate planning issues etc, so you purchase the coverage to meet those. Then if you pass sooner than the actuaries intended why should your family be short changed on what they need to carry on as intended? Trust me insurance companies are making plenty of money, we don't have to worry about them paying out to those who have the grim reaper show up too early. They are in the business of managing risk. For every person who gets a million of benefit after only putting in $500 there are thousands who put in thousands and the policy never pays out either because it was a term or they cancelled it.

 

That is why I keep saying you don't know how it works. Try telling the widow with two young kids that instead of getting the million they need they're only getting $500,000 because their damn husband played chicken with the bus and lost. Who would buy insurance then?

[justnzane]

That is why I keep saying you don't know how it works. Try telling the widow with two young kids that instead of getting the million they need they're only getting $500,000 because their damn husband played chicken with the bus and lost. Who would buy insurance then?

$500,000 in general is plenty for anyone to rebuild and live life. That said i get your point. Yes there are some who cancel there policies or reach end of term meaning profit for insurance company. What I am suggesting would help reduce costs to the consumer. Thats it. That said I was paralleling more to the health insurance originally as life insurance is not the most expensive thing (at my age).

[Jim in Anchorage]

Should you pass? I hate to break it to you, we're all going to pass.

 

But here's the thing, you don't know when that time will come and we all have certain obligations and debts that need to be covered. And a good plan will calculate how much coverage you need in order to cover those current and future obligations, whether it's income, debt, estate planning issues etc, so you purchase the coverage to meet those. Then if you pass sooner than the actuaries intended why should your family be short changed on what they need to carry on as intended? Trust me insurance companies are making plenty of money, we don't have to worry about them paying out to those who have the grim reaper show up too early. They are in the business of managing risk. For every person who gets a million of benefit after only putting in $500 there are thousands who put in thousands and the policy never pays out either because it was a term or they cancelled it.

 

That is why I keep saying you don't know how it works. Try telling the widow with two young kids that instead of getting the million they need they're only getting $500,000 because their damn husband played chicken with the bus and lost. Who would buy insurance then?

Right out of Dickens-"The poor but resourceful widow, with but her last pence half million dollers in her purse, shuffled about London looking for bits of coal"

[Chef Jim]

$500,000 in general is plenty for anyone to rebuild and live life. That said i get your point. Yes there are some who cancel there policies or reach end of term meaning profit for insurance company. What I am suggesting would help reduce costs to the consumer. Thats it. That said I was paralleling more to the health insurance originally as life insurance is not the most expensive thing (at my age).

 

No it's not. Come on dude you're turning into BF here.

[ExiledInIllinois]

I will say that some of those average profit margins (listed above health care) are just as ridiculous. Quite honestly, Health care is something everyone should be able to afford. Now, the fact that one of the largest insurers is making 7% profit as listed earlier. That means that they could cut everyone's cost 6.4% on insurance right off hand to break even.

 

I agree with EinI that the health insurers should be non-profit. No corporation should be able to benefit off telling people that "we are going to let you die after years of paying for help in this moment."

 

Exactly. It (heatlh care) is a social necessity with ethical implications... That is exactly what non-porfit was set up to handle. I am not saying that doctors and people in the health profession should act like members of the clergy... But, it should be pretty damn close to that type of self-sacrifice... Sacrifice self for the sake of others. Science and tech is fast becoming the new "religion," it should start acting like it ethically. And before anyone starts slacking this, I know there are abuses... That is just human nature.

 

Health care has to have one of the worst business models around, any other business would have been under a long time ago. The only thing that keeps it going is the profession KNOWS that people need them or they suffer... Hence they are bled dry.

 

The idea that people enter the health profession to make a ton of money is wrong. People enter into firefighting and rescue people and don't make a ton of money.

 

What we are paying for is the education system and that should be overhauled. Ya... Good luck!

 

The burden should health system, not solely on the patient... There is plenty of money to go around.

[Chef Jim]

Exactly. It (heatlh care) is a social necessity with ethical implications... That is exactly what non-porfit was set up to handle. I am not saying that doctors and people in the health profession should act like members of the clergy... But, it should be pretty damn close to that type of self-sacrifice... Sacrifice self for the sake of others. Science and tech is fast becoming the new "religion," it should start acting like it ethically. And before anyone starts slacking this, I know there are abuses... That is just human nature.

 

Health care has to have one of the worst business models around, any other business would have been under a long time ago. The only thing that keeps it going is the profession KNOWS that people need them or they suffer... Hence they are bled dry.

 

The idea that people enter the health profession to make a ton of money is wrong. People enter into firefighting and rescue people and don't make a ton of money.

 

What we are paying for is the education system and that should be overhauled. Ya... Good luck!

 

The burden should health system, not solely on the patient... There is plenty of money to go around.

 

Any idea then as to how they're going to pay the $250,000 in student loans off.

[justnzane]

Any idea then as to how they're going to pay the $250,000 in student loans off.

he did follow that up saying that the education system needs to be reformed as well

[Chef Jim]

he did follow that up saying that the education system needs to be reformed as well

 

So would you feel comfortable going to a doctor who got a crappy education and doesn't get paid well?

[justnzane]

So would you feel comfortable going to a doctor who got a crappy education and doesn't get paid well?

No, but I would agree that our higher education system costs have skyrocketed to the point where the majority of my generation, myself included is buried with student loan debt. Compound that with the extra schooling costs our medical professionals have to put on their credit tab, it really restricts who is willing to be a doctor. On top of that, it adds costs to the consumer directly.

[ExiledInIllinois]

Any idea then as to how they're going to pay the $250,000 in student loans off.

 

Yep... That is the problem I was alluding too. Academia.

 

EDIT: Oh, and still live an ABOVE means lifestyle... Even after say years of working for next to nothing as an intern. It (the way things are run now) is all in the Hippocratic Oath unfortunately. That part of the oath has to be modernized.

[ExiledInIllinois]

So would you feel comfortable going to a doctor who got a crappy education and doesn't get paid well?

 

You probably already do... The diploma on the wall doesn't say the grade they got.

[Chef Jim]

No, but I would agree that our higher education system costs have skyrocketed to the point where the majority of my generation, myself included is buried with student loan debt. Compound that with the extra schooling costs our medical professionals have to put on their credit tab, it really restricts who is willing to be a doctor. On top of that, it adds costs to the consumer directly.

 

You know who is willing to be a doctor? Someone who really wants to help people and to be paid very well for doing so. You reduce that by half you will reduce by half the number of people willing to go into that profession.