Life Insurance Options
Feb 8, 2008 10:04 pm
OK all you math whizzes, here's a question....
One, you can get your money back if you survive the term. The other, you don't. If you "take the difference" and ASSUME that they can get a positive return, you're still not going to be as well off as buying a permanent policy.
It's not a question of math. It's a question about how a policy can be considered as a financial asset and enhancing one's estate and the options that having such a policy can open up for the insured.
FV of 469 no interest for 20 yrs equals $112,560
FV of 268 (469-191) for 20 yrs depends on AFTER TAX rate of return.
10% = 211,105
8% = 163,748
4.9% = 112,957
Therfore if you can get 4.9% after taxes you could have more money in your account at the end of 20 years. Plus if you die before the policy ends your beneficiaries also get what you've saved.
And yes I'm bored and my wife is asleep on a Friday night.