Originally Posted by
Ksandra
Do you have an answer to it? Unless I misread, the point of the thread was for you to have a better understanding of people's reluctance towards life insurance, but that doesn't do you much good if you don't have an answer to those. So, how did insurance companies offset the lost of profit once the regulations came in? When Obama set the credit debt regulations, banks switched to insane overdraft fees to recoup. So, insurance must have done something else. What was it?
And that's a full stop for me. Honestly. Yes, I get it. Lending Club is not going to give me a huge payout if someone dies, but I am averaging a 14% rate on returns right now through them. And I get to control how much money I put into it, and where the money is going. All the while, it's pretty straight forward on how Lending Club is making money off of myself and others. They are still making money off of money, but they aren't doing it through crazy hidden tactics/policies.
And most importantly, if something happens and I can't put in any extra for a little while? nbd. I'll still get my payments back as it goes. While it has its own set of risks, I widely diversify the money I put into it. And I find it to be a lot less risky.
We only have so much money to allocate towards investment. We're not rich. I'd rather take that extra funds and put it to something I see a direct benefit to. In order to invest in life insurance, I would be cutting back on my other investment. And that's not worth it to me.