- Staff
- #11
sman said:Superchief said:I pay premiums for 20 years, don't die and lose all my money. Sounds like a genius business decision. Am I missing something on this one?
How much of your homewoner's premium do you get back? How about that auto insurance? They offer a huge refund, don't they? Maybe your medical insurance does that? No? O.K., dental, DI? Why is it only life insurance where people think they have wasted money?
Insurance is a transfer of risk. Life insurance included. My goal is to pay for all types of insurance and hope I never have to use them. I need at least $1,000,000 of life coverage while my children are young. I can spend about $600 per year for a 20-year term. Or around $1,000 per year for a 30-year term. Or I could spend about $5k per year for a GPUL. Maybe I don't have an extra $4k to spend to get the coverage I NEED. But let's say I do have $5k per year to spend. Let's say I opt for the 30-year term and invest the $4k difference in premium and earn 8%. At the end of 30 years I have nearly $500k saved up. Or I could have $100k-$150k cash value in that GPUL policy. You tell me which one is better.
In addition, you can get a Return of Premium Term policy these days. So at the end of the term period, you get all your money back.
WELL PUT............