Bro Troll, this is so not true.
1)
large part of it goes into subsidising the insurance agent's car, housing and lifestyle,
Agent's commission is only entitled for the first few years and, depending on the type of plan you bought, most of the time it's less than 50% of the premium.
2)
These insurance companies will take this fund and invest in anything that hopefully make them money to pay the CEO, directors and shareholders.
Only 10% of the profit is paid to shareholders and the rest is paid to policy holders for Participating policies .
3)
If you drop dead, then the money will be paid back to your estate, somethings not without a lot of kicking and screaming and reluctance on the part of the insurance companies.
Provided death benefit is included in your insurance policy, if your policy is more than 1 year; not died from illness that you were diagnosed before buying the insurance
and did not declared; not died from illness excluded in your policy contract, the claim procedure is quite strait forward (no kicking and screaming required) and usually payout within weeks if not days .
3)
They will usually do whatever it takes to avoid paying, by claiming certain exemption clause which you never seen when you signed on the dotted line, because you were too busy checking out the insurance agent's "career line"
Insurance company can only pay what can be paid. In fact sometimes cannot pay one they also pay, out of good will or empathy.
After you buy a life insurance, the policy contract will be sent to you. Everything about the insurance you bought is in the contract. Upon receiving the contract, you have 2 weeks to go through it. Within these 2 weeks, if you are not happy with what you had bought, you can cancel it and get a full refund.
4)
If nobody claims the money after you drop dead, insurance company will happily keep quiet and and lapse your policy because you have not keep up with the premium payments.
If nobody make claims, how the insurance company know that you are dead? By right your agent should be in regular contact with you, if something happen to you he/she will be able to assist your family members about claim matters.
5)
But of course now you can't reinstate your policy because they will require a comprehensive health check before they do so, but you are already dead!
Provided death benefit is included in your insurance policy (and conditions met according to contract), if you die before policy lapse, your family members can still make a claim.
So many times when people told me that his so and so passed away or was hospitalized they said "heng ah, got insurance if not really dunno what to do..."
Insurance and insurance company is not out to cheat people's money. Most of the time it's the customers trying to cheat the insurance company, by not making full declaration or claim that "agent never say...". Even up to the point of faking death (happened in Sinkie land before); Or rogue agents making false statements about the policy benefits.
The thing is you have you have to know what you need, what you want and what you bought.
Above comments are made to the best of my knowledge and in my personal capacity.
