by Guest » Thu Dec 18, 2008 07:15 am
Hi friends,
A few things to know..
Is the term life insurance of any real help to people? Is it possible for a consumer to opt for multiple policies at the same time?
Otherwise what would happen when the term lapses!
Purpleheaded08
A few things to know..
Is the term life insurance of any real help to people? Is it possible for a consumer to opt for multiple policies at the same time?
Otherwise what would happen when the term lapses!
Purpleheaded08
Posted: Mon Jan 05, 2009 07:47 pm Post Subject:
No problem.
Posted: Mon Jan 12, 2009 12:53 am Post Subject:
What would be the point of funding the full single premium UL? If you died the next day, the carrier would take back all of the premium/cash value and pay out the $500k. If the cash value at age 50 was $180k and you died the next day, they take back the $180k and pay out the $500k. If your cash value at age 70 is $450k and you died the next day, they take back the $450k and pay out the $500k. At this point, you have in essence only $50k of insurance (these are just made up numbers, but you get the point).
The client would likely be MUCH better off paying the absolute minimum premium on a UL policy with a no-lapse GUARANTEED death benefit no matter what the cash value is on the policy, and putting the difference into another investment or savings vehicle. This way, if the client dies tomorrow, they get the full $500k and still have the original $70k they would have used for the single premium policy. What would you rather pay - $70k up front, or $2500 each year? If you took $70k up front and earned an extremely low 4% rate of return, you would have ~$227k after those 30 years. Personally, I'd rather have the $500k death benefit plus the remaining balance than just the death benefit.
In general, life insurance should not be mixed with investments. The point of life insurance is to pay a death benefit, not grow your assets. Just my 2 cents.
Posted: Mon Jan 12, 2009 06:56 am Post Subject:
Hi, I don't think these life insurance policies are specifically designed to match up to other investment options. When I think of investing, I'd rather choose a mutual fund that yields optimum returns. Life insurance does have a significance when it comes to the securities of my loved ones. But, thats more about covering up a risk rather than capitalizing on its benefits.
Posted: Sun Apr 12, 2009 11:52 am Post Subject: hi
term life policy benefit is
you have to less premium and get a better coverage
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