09-27-07 - 2

I cashed out this life insurance policy that my grandparents bought for me. Wow, what a good move that was. I would've cashed it out for almost any amount, cuz what good does life insurance do me? Hell I'm pretty close to just cashing out all my IRAs and eating the penalty because money that's no good until I'm old is worth ZERO, while money I can have now is actually worth something. Anyway, the life insurance policy was for like $30k which is not much, but it paid out cash value of like $8k. It took like 3 weeks to get it cashed out and they kept trying to talk me out of it, which is one of the clear signs that it's a scam. Anyway, if you assume I'll live to around 70, that $8k at 5% a year would appreciate to $56k, and they only pay $30k, so they make a profit of $26k on my policy. Pretty sick, and of course the longer I live the more they make, with life expectancy going up all the time the life insurers are rolling in the free mobnies. The only time I can see life insurance being a good move is if you are the big wage earner and you have a wife and kids that can't make any money, AND you also have no savings, because if you have decent savings that they could live off of then the life insurance is still -EV. In almost any case you're better off taking the money you would've paid to your life insurance premiums and just putting it in an emergency savings account instead, but there are a few rare cases where it would be prudent (in those rare cases you can usually get your employer to buy you a policy).

Anyway, lesson is : if you have some dumb life insurance policy, cash it out !! Also, if you have a creaking bottom bracket, just remove it, clean it, grease it and put it back in! (don't grease the crank arm axles though, and don't try to grease inside a sealed cartridge bottom bracket which you surely have, just grease the threads).

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