A reader sent in this interesting comment from a reader who has been following my blog for a while.
He is not a writer, but he writes: I recently purchased an insurance policy for my wife and two sons.
My wife was able to obtain a policy through my broker for about $4,000.
She wanted the same policy for her youngest son.
My son was very concerned about the policy price, and he had my broker send him a copy of the policy.
This was a good time to ask my broker what it cost the policyholders to insure their son.
It was $4k, which was an enormous amount of money for an insurance company.
The broker, a senior in his mid-40s, informed me that the policy was available at $5k for a three year policy.
At that rate, he could insure my son for $10k.
This means that my son would be entitled to $30k per year.
Now, he would have $10,000 of coverage, but if he were to become a parent, this would become less of an issue.
The question was, why would anyone want to buy a policy at $3.5k, when the policy could be purchased for $5,000, and my son could afford to buy his own policy?
If I wanted my son to buy an insurance product, I should pay the difference in premiums.
However, I would pay more.
Why would anyone think that it is a good idea to pay the extra $5 for an extra policy, and not the extra premiums that would be incurred for the additional coverage?
It is easy to see why my broker, who is not an insurance broker, would be worried about the $5K premium.
In this case, the premium was so high that it would be better to purchase a policy of less coverage, and that way my son, who would likely be less fortunate, would still have a reasonable insurance policy.
My broker has an easy way to make money from insurance: he makes a small profit on every policy purchase, which is a form of “risk-free” capital gain.
The client can only deduct the premium for the policy, but the broker makes a profit on the difference between the cost of the insurance product and the premiums that it covers.
That profit is what the broker receives in the form of a commission.
As a broker, I am obligated to sell my policies at a loss, but I can make a profit by selling insurance at a profit.
The risk-free capital gains make it possible for the broker to make more profit from his own insurance policies.
So why is it okay for my broker to take a commission from the purchase of a policy?
He can make more money by selling the insurance, but that does not make his profit any less.
He can sell the insurance at an even lower price than the policy would cost, which makes the broker’s profit much smaller.
He could make a good profit selling insurance that costs $2,000 a year for two years, but it is not worth $4K a year if the policy will cost him $5 million in five years.
If I were an insurance agent, I wouldn’t want to work for a broker that took commissions from the insurance policy purchase.
In my experience, broker commissions are often used to pay for other services, such as advertising.
So if I was a broker and needed to advertise the $3,000 policy, I could advertise that $3k policy at a cost of $2k a year.
The insurance company would then receive a commission for advertising the policy at the same price.
That is a profit for the insurance company, but a loss for the consumer.
The same goes for the brokers who make commissions from insurance sales.
A broker can sell insurance at any price, but an insurance salesperson will not want to sell insurance for less than the price of the policies.
When you buy insurance, you are essentially purchasing a “lifetime” policy.
Your policy is a promise that you will pay for the premium every year.
If you do not make payments on the policy and the policy becomes delinquent, you will be liable for a penalty.
The penalty will be the difference you have to pay out of your income to pay off the policy every year, plus interest.
A lifetime policy can be a great financial decision for a person, but for a large business, it is likely not an economical choice.
Insurance policyholders typically have to make monthly payments for their policy, which can be quite a burden on a family.
As the insurance industry matures, policyholders will have more choices for how to pay their premiums.
If the insurance companies is going to change their policies to cover a new population, they will have to figure out how to deal with this change.
For example, it would not be a good strategy to insure a large group of people.
A policyholder might be able to purchase