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Old 19th March 2008, 04:43 PM   #8
dschachter
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Join Date: Jan 2008
Location: Connecticut
Posts: 4
Default Life Insurance

If you put the premium, say $500, into a savings account and die that year your heirs get $500 plus 4% interest. If you'd used that money to outchase a $500,000 term life policy they get 1,000 times more money.

It's not a bet, it's protecting your loved ones. You're insuring your lost income so your family can pay the bill while figuring out how they're going to pay the bills in the distant future.

You're basically giving them 5 years income (that's the rule of thumb when deciding how much to buy) so your wife or husband can get trained and go to work.

One more thing, buy term life not Whole life or universal life. The rate or return on your money on those policies is VERY low.

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