Reply #49: bes, you don't understand

[mopinko]

it is not like car insurance, it is more like whole life, that pays out as an annuity. and when you tell me i have to pay $100/yr to get $10,000 on death, you cannot just say oops, we didn't do the math very well, and them write my family a check for $8,000. yes, premiums get raised sometimes. but a company that raises them to cover the fact that funds are being misappropriated elsewhere in the company would be in trouble with the law.

try this scenario-
a young married couple just starting out, with nothing but obligations, buys a life policy when they start a family. they are both lucky and hard working, and over the years, they accumulate a decent estate, and raise their kids to be upstanding and successful adults. they don't really need the insurance any more, but they continue to pay.
they die. if this is you, what are you going to say when the guy from state farm comes by and says, sorry kids, i know your parents paid all their life, and expected to leave you this gift. but i gave your check to the folks down the street who didn't have your parents good luck. they need it more.
i'm a good lefty, so i might even buy into such a system. but you ain't gonna sell that policy to most people. and i especially think you would have a revolt on your hands if you passed a law that everyone had to buy such a policy.