skip to Main Content

I’m going to tell you a secret—a secret that I’m sure insurance companies don’t want you to know.

While life insurance is not a game, many companies approach it this way, relying on strategy and statistics.

Unfortunately, most people LOSE the game…and the insurance companies need to keep it this way.

But I want my customers to win the game. So this brings me to the “secret.”

The “secret” isn’t about how much you pay, or what kind of coverage you buy, or who you buy it from.  And the secret, which you’ll realize is so obvious once you hear it, can work with all kinds of insurance – term life, whole life, universal life, or any other kind of life insurance.

I should probably first explain what I mean when I say “win the game of life insurance.”  It means that YOU…he consumer…comes out ahead and the life insurance company doesn’t.  In other words, you end up MAKING money when it’s all said and done instead of losing it.

Now, on to the secret …


That’s it, just die with your policy in force and you’ll win the game.  Sounds easy and obvious, right?

But trust me; there are SO many people who LOSE the game of life insurance.

Why do so many lose the game?

There’s never been a better time to be buying life insurance than NOW!

Even though the secret sounds so simple and obvious, we learned that so many people disregard it and lose the game.  Why and how does that happen?

Well, we all die, so obviously these people don’t lose the game of life insurance because they live forever.  They lose because their policies LAPSE BEFORE THEY DIE!

This can happen for a variety of reasons.  Sometimes, it’s because they no longer want the policy…maybe they’re divorced or they bought it for someone they no longer care about, so they intentionally drop the policy.  Sometimes, it’s because they run across some tough times, lose their job, and have some difficult decisions to make, like, “Should I feed my kids…or pay this life insurance bill?” Obviously, that’s an easy decision.  Maybe there was a change in address and the life insurance carrier wasn’t notified, which would cause the insured to not receive bills and, in turn, cause the policy to lapse.

The bottom line on all these reasons…and others…is that the insurance company doesn’t care WHY they lapsed.  They’ve collected premiums for years…but they NEVER end up having to pay a claim on that policy.  In other words, they WIN and you LOSE.

And the profits the insurance companies make on all these lapsed and expired policies actually SUBSIDIZE the ridiculously high rates of return for the people SMART enough to continue to own their life insurance and DIE with their policies in force (you can call this group of people the winners circle!).

There’s never been a better time to be buying life insurance than NOW!

Winning the Game with Life Insurance

When you opt for a level premium for the rest of your life.

Consider this example:  I bought a policy last year…at age 55.  $1 million of coverage at a price of just over $10,000 a year.  Assuming I live to age 85, I will have made 31 payments of $10,000, or around $310,000.  My family will receive $1,000,000 tax FREE…for a gain of $690,000.  That’s an AFTER TAX rate of return of over 7%, and the pre-tax equivalent rate of return, at least for me, is well over 11%, and it’s a conservative, fully guaranteed contract, issued by a multi-billion dollar, A+ rated financial institution that’s been around for many years.

And remember, that high return is if I die about when I’m supposed to.  If I die early, then my policy really pays off. The returns are astronomically high.  When I bought my policy, I tried to fathom a scenario under which I could live long enough to make the purchase a bad deal.  The fact is, I can’t.  Even if I live to 100, I still WIN the game.

Let’s look at another example, one that’s more representative of our average customers:  Age 43, female.  $500,000 policy, LIFETIME guaranteed premium of about $2,500 a year.  Say she lives to age 86.  She will have paid in $2,500 times 43 years, or a total of $107,500.  Again, at her death, her family would receive $500,000…tax free…for a net gain of $392,500.  The AFTER tax internal rate of return on that is over 7.5%.  The pre-tax equivalent is, again, right around 10 or 11%, depending on your tax bracket.

In today’s world of ZERO interest, where else can you go and get returns this high WITHOUT taking market risks?

The Choice is Yours

Some people ask, HOW can the life insurance company make any money on a policy where they’re returning a 7% rate of return if you die at life expectancy, and an astronomical return if you die early?  Especially when they’re only earning roughly 5-6% on the premiums you’re paying!

In case you weren’t listening, they DON’T make money on those policies.  Again, If YOU DIE WITH YOUR POLICY IN FORCE, the insurance company WILL LOSE money on it.  The people who buy…and DROP…their policies PRIOR to dying are the ones who subsidize the returns for people who are smart enough to DIE WITH THEIR POLICIES IN FORCE.  Look at it like this:  the losers pay the winners, and the house (the insurance company) takes a small cut.  I know it sounds crazy, but it really is that simple.

Here’s the bottom line:  TO WIN THE GAME OF LIFE INSURANCE…you have to own a policy that you’ll be able to KEEP until you die.  Now for most of us, that means a policy with an affordable, predictable, and level premium for life. In short, buying life insurance could be one of the smartest financial decision you’ll ever make.

The choice is yours. If you are going to own life insurance, you’re either going to WIN the game, or you’re going to LOSE the game. We WANT you to WIN. When you speak to one of our advisors for FREE, we’ll tell you how to win, and give you simple ways to make that happen.  As always, it will be up to you as to whether you decide to take our advice.

There’s never been a better time to be buying life insurance than NOW!

Ready to Start Winning?

This assessment is presented by to help New Zealanders determine the best way to protect themselves and their families. This is a 100% no-obligation assessment.

Amanda Crowe

I am a professional writer for WiseKiwi and aim to help kiwis make informed financial decisions and keep up to date with information that could directly affect you.

Back To Top