Image Courtesy: Discovery Channel
Cash Value Life Insurance, China and El Dorado
For a capitalist state like ours (thank God even China is a socialist capitalist state today!) the first two words of ‘cash value life insurance’ is a Right Bros invention by the insurance companies. To me, it sounds more powerful than Jesus himself (No blasphemy meant!). Just think how the name of the Prophet of Nazareth got corrupted and turned into interjections: jeez, jeeze or geez. But, we, the sons and daughters of the land of El Dorado, have not corrupted the phrase ‘cash value’. Truly speaking, the phrase 'cash value life insurance' has a pull of its own.
A great pull.
The Gold Rush Series and the Aggreived Lady from Ohio:
While thinking of and studying for writing something on cash value insurance, I chanced upon a review of one of the most popular mutual insurance companies that sells cash value insurance. The aggrieved reviewer from Lucas county, Ohio, in a famous consumer review site--
Writes...
I bought whole life policy when I was about 18 years old. I paid $42.00 per month for nearly 30 years and was told every year after the original 'maturity' date that the promised cash value had not 'popped' and would not. The value was supposed to be about $80k to my recollection. I was told it was only about $4k and chose to cash it out as after dozens of phone calls, I was just given the runaround. The reason I am doing this review is a young person approached me selling one of these policies from another company. He said it would be a great investment. That I would put money in and if I didn't use the life portion, I would virtually receive my initial investment back (no interest of course). I lost tens of thousands of dollars from ABC and would never recommend a whole life policy. Put you(r) money in other investments and buy a term life policy. ABC stole my money.
An Apology
I have used ABC for the company name. Though I know referencing the aggrieved person, citing the source and naming the company would add authenticity to my writing, I refrained from doing so with a view not to inconveniencing any parties.
Apologies begged.
Let's Give Her a Name
The aggrieved person’s, let’s give her a name Ms. Aggrieved, complaints remind me of Christo Doyle’s (Executive Producer of) reality TV series Gold Rush aired on Discovery Channel. While watching the series, I sometimes felt like crying seeing the primitive efforts that brought up nothing to the miners. I think you also felt the same way seeing the miserable conditions of the fortune seekers in the forlorn and dangerous lands.
But...
they had hopes.
And ...
they had despair.
It was like a rainbow of hope and despair.
When luck favored, they again had hopes, to be quick-rich, millionaire, billionaire, trillionaire, zillionaire.
Cash value life insurance, if you have perused the review above, you might have noticed, creates the Gold Rush hope in some, if not many, of us.
Unfortunately...
It is to bring despair.
And, unless you know what cash value insurance is and how it works, you may also feel it, the despair of God Rush. This is the reason the discussion got birth.
So…
What Is Cash Value Life Insurance?
Nothing!
Well, nothing!
Yes, nothing!
There is no such thing as cash value life insurance. It is a strategic catchphrase related to whole life insurance. The central characteristic of whole life insurance is the length of insurance protection that it provides to the policy beneficiary. When you are on its opponent form of insurance, the term policy, your protection is valid as long as the contract is signed up for. Once the contract years is gone, you are signed off and fall out the protection. The end is tragic— with all your money gone. But the length of protection with whole life insurance extends so long as you live. A sweet end awaits you-- the benefit coming to you.
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