Why Senior Life Insurance Rarely Works As Planned

I was recently reading about something called senior life insurance plans (in some parts of the country, they are called graded death benefit plans). This has nothing to do with life insurance for seniors, but instead, refers to a type of policy that has a gradual payout structure that takes three to seven years for the insurance company to pay the beneficiary. In theory, this type of insurance is appropriate for people who want to provide for a beneficiary that will have trouble handling large sums of money so instead, the insured makes arrangements for periodic payments over time.

There is some variety regarding plan specifics, but generally, a senior life insurance plan is one that has a payout term of anywhere between three and seven years and offers nominal payments upfront.

For instance, let’s say you elect for coverage that gives you a $500,000 payout upon your death. … Read the rest of this article!

Why Penny Stocks Are Bad Investments

You have probably read or heard someone express the following sentiment: “I enjoy investing in penny stocks. It seems so easy to make money quickly because it is so much easier for a stock to go from $0.25 to $0.50 instead of $50 to $100.”

More experienced investors can recognize the logical fallacy in this. Regardless of a stock’s per share price, any doubling of the stock requires a doubling of the market capitalization (unless there are stock buybacks). If General Electric (GE) stock rises from $31 to $62, it is because the investor community thinks that General Electric is worth $560 billion instead of $280 billion. Likewise, for Rubicon Technology (RBCN) to go from $0.62 to $1.24, the valuation of the business must go from $15 million to $30 million. Both shifts require a 100% increase in market value.

A lot of people probably look at Berkshire Hathaway’s Read the rest of this article!