• Buying Money at a Discount: Another Look at Life Insurance

    If I were to “sell” to you $1,000,000 and my “price” is $200,000, would you take my offer? You’d probably think I’m some kind of scam or I am selling counterfeit dollars. After all, you may wonder, how can I profit from my business with my outrageous offer?

    2 Conditions for You to Claim $1 Million
    Wait, let me explain, my business is legit. Let me mention 2 conditions for you to claim your $1,000,000:

    • You must die or reach a certain age. If you die, it will be a relative whom you name who will enjoy your $1,000,000.

    • You must at least 18 years old, but not more than 25 and you must be in perfect health. (I can still “sell” you the $1,000,000 of you were older, but I will also raise my selling price.)

    By now, you must know the business I’m in. It’s life insurance. And isn’t it that’s how life insurance operates. My “selling price” is the insurance premium while the money I am offering you is the insurance proceeds or face amount.

    How do I Make a Profit?
    You may ask how I can profit from my business. My answer is for me to sell many of my plans. If I sell 1,000 of my plans to my intended market, and only 1 of my customers die, I come out with a profit, right? I work on the law of probabilities and risk-sharing. When my customers are mostly young and healthy people, then there probably won’t be many instances of people dying.

    But there are also other causes of death. Among others, a person may die from accident, natural or even a crime. Again the chances of my customers dying from these causes are very slim. But it can happen. Unpleasant to think as it is, death can happen to even the healthiest people.

    Special Promo Offer!
    And my product has a “promo.” You may have heard of the marketing line “Good only while supply lasts.” And, yes, my product is “good only while supply lasts.” When I say “supply”, I am referring to your health and age. As I said, I sell my $1,000,000 at a higher price for people who are older and less healthy. But there comes a point when you may be too old or too sick so that are no longer eligible to buy the product. If I allow you to buy my product, I would probably sell it to you at around the same price as my product – if not higher. You would then find my offer no longer unattractive, right?

    So, the next time a life insurance agent approaches you, remember that he’s actually selling you a god amount of money at a good discount. That money you “buy” may be used to tide your family over in case you pass away (especially if your children are still in school) or funds to be used for your retirement or other purpose you may have.

    Give Life Insurance Some Serious Thought
    The next time a life insurance agent approaches you, give his offer some serious thought. Remember, the offer is good while supply (your health) lasts.

    Article Created: 2013-10-24
    Article Updated: 2013-11-13

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