Insurance…are you kidding?

I made the mistake of posting my resume on one of those big employment search websites. I was smart enough to keep my contact information private so potential employers would have to ask my permission to be contacted.
Well you guessed it. Insurance Companies are now trying to get me to contact them. Get serious. All you want me to do is come to you, bring a list of all my personal contacts and family members, so you can burn through them with your "special insurance and investment" products. Obviously this is not what I would be looking at but now I will give you my son's recent insurance story.
My youngest Josh, and his wife, were recently sold a $100.00 a month life insurance policy. May not sound bad and maybe normal to some of you, but let me explain why this was not a wise investment. They are just married, no children and do not own a home. They have no assets and both have jobs. Josh has a benefit package at work that has a term life insurance element of 100,000 dollars. Starting to get the picture? What do these guys need insurance for? Well, says the agent, it is 'PERMANENT' insurance, not just normal insurance. Permanent? What does that mean. In layman's terms, it is just Universal life with a new name. Universal insurance is whole life insurance. Now you are getting it.
They were told if they buy in now, their insurance cost would be less and stay the same cost throughout the policy term. I could go into allot here but let me give you some brief thoughts and facts:
If they just bought 100 thousand dollars in term insurance, it would cost them maybe $40.00 a month. They could then put the other $60.00 in mutual fund or some other savings instrument.
They don't need insurance at all as they have no assets to protect and no children.
Universal life is self destructing…what I mean by that is the insurance element has a cost per thousand based on age, etc. As each year goes by, the cost of the insurance goes up so more of the 100 dollars a month in premium, will be used for the insurance portion of the whole life policy and less into the "special savings portion". It doesn't take a lot of imagination to figure out as you age, nothing will go into savings all will go to insurance. It will also eat up any savings you have received from the years to top up the insurance premium.
If one of them died, they would receive the face value of the policy, 100,000 dollars. Not the savings they had supposedly accumulated. It is used to pay the face value. He was actually funding his own payout!
Oh, did I mention the first 2-3 years of the policy there are no savings at all in there for your 100 a month…they go to the agent for commissions. They call it Admin fee's. Josh would have been better to put the 100 bucks in his mattress for 2-3 years, at least it would be there after that.
I am not blaming the agent as he is younger and was told to sell this stuff. His office also took him to a custom shirt shop so he could get custom fitted monogrammed shirts made. The agent is seeing all this and figures this is what he needs to do.
I am not going to mention who the Company was as this is the same with most Companies. My son saw the 'light' and canceled the policy.
I am not against Insurance Companies. I am against trying to sell people products that hose people. I have term life insurance. Not whole life and will never own. Neither should you.

I will keep ignoring these fine insurance job opportunities.

Kind Regards,

Larry J Clark