[katezbox]

Originally Posted by rjm1cc

"Guess what the Insurance Company is betting on.
From the Create a Paycheck article;
Average life expectancy for a 65-year-old male is 84.2 years."

Average means 1/2. That would say the insurance company is counting on 1/2 of its policy holders dyeing and to use that money to pay the other half that lived.
This means if you think your life expectancy is less than 84.2 years then don't buy.

If I was buying the policy I would be planning on being part of the 1/2 that won the bet. Again the policy is designed to share the risk of running out of money and like any other business the life insurance company keeps part of the dollars you pay into it to pay their employees and stockholders.

Pretty much what you are paying for is peace of mind. I know many worry what will happen if their $$ runs out. I would put this in the same category as paying off your mortgage. For many it makes no sense from a financial point of view (given our current tax structure), yet knowing that you own a home free and clear is a great way to get a good night's sleep.

The insurance companies would not be selling this product if they were likely to lose, but really.....do you care about how many people don't make it to 85? No...you care about you! I think this may be helpful for those folks who have one spouse with a pension and no survivor benefits...it makes sure the survivor continues to have income.