Discover What Miller Hanover Insurance
May 3, 2021
This $80 will now be deposited into a new account for you. In most cases, if you want to get any of YOUR money out of the account, you can BORROW IT and then PAY IT BACK WITH INTEREST. Let’s say you were to set aside $80 per month and send it to your bank. If you went to withdraw money from your bank account and were told that you had to BORROW money from them and pay it back with interest, you’d probably smack someone in the face. However, when it comes to insurance, this is somehow appropriate.Learn more by visiting Miller Hanover Insurance
This is due to the fact that most people are unaware that they are borrowing money from themselves. Rarely can the “agent” (of the insurance Matrix) justify it that way. One of the ways businesses make money is by allowing customers to pay them, then having them borrow their own money and pay even more interest! Another example is home equity loans, but that is a subject for another sermon.
Let’s stick with the example from before. Let’s say a thousand 31-year-olds (all of whom are in good health) purchased the aforementioned term policy (20 years, $200,000 at $20 per month). These people would pay $240 a year if they paid $20 a month. If you average that over a 20-year period, you’ll come up with $4800. As a result, each individual will pay $4800 over the course of the term. Since a thousand people purchased the policy, the company would receive $4.8 million in premiums. Around 20 people in good health (between the ages of 31 and 51) will die, according to the insurance provider. So, if 20 people die, the organisation would have to shell out $400,000 ($20 x $200,000). As a result, if the organisation pays out $4,000,000 and receives $4,800,000, it would profit $800,000.