At some point, probably most, if not all life insurance professionals have heard someone say life insurance is a scam or that they cannot understand why someone should be worth more dead than alive. The other remark, whether said in jest or not, is that they don’t want to give their spouse or business partner a reason to kill them.
Let’s be serious
Life insurance is called what it is because it is intended to insure financial life for the survivors/dependents of the deceased. Its primary purpose is to replace lost income. It is meant to avoid financial hardship caused by death while allowing many people to enjoy the living benefits. It is not and never has been, nor will it ever be intended for anyone to profit or be better off because of someone’s death.
Is it to say fraud does not exist and that there are not scam artists who will try to take advantage of what is intended to be a good thing? It absolutely exists. Unfortunately, fraud exists in every walk of life and spoils it for the vast majority of those who attempt to play by the rules.
Life insurance is honorable as are most life insurance professionals.
If someone does not care about the financial future for themselves, their family, or their business then they are not candidates for such a policy.
Someone who does care, who is interested in securing a nest egg for themselves, their family, or their business regardless of if they die too soon or live too long, this is a perfect solution, if not the best solution.
Where is the dishonor in creating a tax-free solution that is legal and will benefit all concerned?
Perhaps the person who believes it’s a scam is really shining a light on him or herself as being less than forthright or honorable. Perhaps that person is one who looks for ways to take advantage of others and of a good thing and therefore believes he or she is a victim and is being targeted.
Perhaps someone who believes that a death benefit is about someone being worth more dead than alive does not appreciate the true meaning of his or her own life. Maybe they are completely oblivious to the fact that it can help them while they are alive as well as help those they care about if his or her life should unexpectedly and suddenly come to an end. It’s possible they believe their life will never end.
Someone who believes that insuring his or her life will give his or her spouse or business partner a reason to kill them needs to take a hard look at his or her marriage or business partnership. Why would anyone be married to, be in business with, or have anything to do with someone who they think might kill them?