Insurance payout and 'totaling'

On Fri, 28 May 2004 18:13:24 -0500, "VideoGuy" gkasten at brick dot
net wrote:

Best bet is whole life insurance, bought early in life. Of course, the only
way to collect is... sigh

Whole life? I don't think so.

Ricky

I believe the best bet is no insurance.

Think about it. The insurance company exists to make money. They collect
more in premiums than they pay out. I believe that over the long run, you
will pay more in premiums than you will collect.

I stopped paying collision on my auto the day I got the title. I don't carry
hull insurance on my plane.

I Only insure against a loss that will change my lifestyle. (liability,
home, health)

"VideoGuy" gkasten at brick dot net wrote in message
...

Best bet is whole life insurance, bought early in life. Of course, the
only
way to collect is... sigh

"VideoGuy" gkasten at brick dot net wrote in
:

Best bet is whole life insurance, bought early in life. Of course, the
only way to collect is... sigh

Next thing you know, insurance companies will start declaring a total loss
on life insurance policies if you sustain 60-70% of injuries. Then they can
make back the difference in salvage value...

How much does a cadaver minus a few fresh vital organs go for these days
anyway?

Steve Foley wrote:

I believe the best bet is no insurance.

Think about it. The insurance company exists to make money. They collect
more in premiums than they pay out.

Not usually. They usually take the premiums and invest them in things like the stock
market. That's where they really make their money. That's also why premiums skyrocket
when the market goes down.

George Patterson
None of us is as dumb as all of us.

In article ,
Steve Foley wrote:

Think about it. The insurance company exists to make money. They collect
more in premiums than they pay out. I believe that over the long run, you
will pay more in premiums than you will collect.

The insurance company makes the most money by investing the premium
money. When the stock market is doing badly, insurance rates go up.
When the market is doing well, the rates go down.

"Ben Jackson" wrote in message
news:44Ltc.12956$n_6.5876@attbi_s53...

Their total cost is $policy_value-$salvage. As soon as $repair exceeds
that, it's cheaper to total. Consider how much of an aircraft's value is

This is why you should be careful to never insure your airplane for a hull
value less than something with which you would be happy in the case of a
declared total loss.

Imagine if your airplane is worth $100,000 and you insure it for $75,000 and
then suffer a $10,000 loss. They could total your airplane, pay you
$75,000, fix the airplane, and sell it for $100,000. In the process you
lose $25,000 plus your premiums; they gain $15,000 plus your premiums.


--------------------
Richard Kaplan, CFII

www.flyimc.com

"VideoGuy" gkasten at brick dot net wrote in message
...

"Ricky Robbins" wrote in message
...
On Fri, 28 May 2004 18:13:24 -0500, "VideoGuy" gkasten at brick dot
net wrote:

Best bet is whole life insurance, bought early in life. Of course, the
only
way to collect is... sigh

Whole life? I don't think so.

Ricky

Well.... Maybe I should have just said "life" insurance. Better?

GWK


No. It is one of the worst investments ever invented.

In article m, Dave
Stadt wrote:

Well.... Maybe I should have just said "life" insurance. Better?

No. It is one of the worst investments ever invented.

Unless you are the person selling the policy. :-))

"Richard Kaplan" wrote in message ws.com...
"Ben Jackson" wrote in message
news:44Ltc.12956$n_6.5876@attbi_s53...

Their total cost is $policy_value-$salvage. As soon as $repair exceeds
that, it's cheaper to total. Consider how much of an aircraft's value is

This is why you should be careful to never insure your airplane for a hull
value less than something with which you would be happy in the case of a
declared total loss.

Imagine if your airplane is worth $100,000 and you insure it for $75,000 and
then suffer a $10,000 loss. They could total your airplane, pay you
$75,000, fix the airplane, and sell it for $100,000. In the process you
lose $25,000 plus your premiums; they gain $15,000 plus your premiums.

On the other hand, don't over insure it. The Mooney Service Center in
Stockton had a new Eagle in the hanger that had lost an engine and
glided back to the airport. The pilot overran the runway and bent the
wings between some trees. He wanted the insurance co to declare it a
total lose and write him a check but because the total coverage he had
on it was so high (higher than the insurance co wanted to pay) they
actually paid Mooney to put new wings on it (probably close to
$100,000 in itself) and repair all the gear, belly and flaps. Now he
has the same plane back but would rather have gotten the insurance
money and bought something else.

-Robert

"Robert M. Gary" wrote:
Now he has the same plane back

Except now it has major damage history and is worth substantially less
than it was before, even if the repairs were perfect. Ouch.
--
Dan
C172RG at BFM