Say if you have taken out life insurance for yourself for 20 years and you dont die.... I know it sounds horrible.... what happens to the money you have payed in?
2007-06-20 06:11:46 · 17 answers · asked by Proud Mumma Lola 2 in Business & Finance ➔ Insurance
What type of life insurance is it?
If its the type where it builds cash value, you are covered for the rest of your life as long as you can keep up with the premiums. If you do the math, the amount of total premiums you put in will be more than what is in the cash value at any given point of time. That's why cash value grows tax-deferred. You are paying at a loss and this loss is not even tax-deductible!
If its a 20 year term insurance, you get nothing back. Why? Just like car insurance, if you stop paying, you lose coverage. They don't build cash value. So premiums are very low, making it affordable for the family to get the right amount of coverage. In the mean time, you should be investing into your future. I would open an IRA account and invest. If you invest $200/month and your portfolio gets an average rate of return of 12%, in 20 years you will about $200k. In 25 years, $380k. In 30 years, $706k. And in 35 years, $1.299 million.
Are you going to get 12%? I don't know. It all depends on what you invest in and how you go about it. Are you invest once a year, once a month, or whenever you feel like it? I have a Roth IRA and I put in $100/month. My portfolio currently has an average rate of return of 14%. I'm only 25, so I still have lots of years to go before I retire. Hopefully I will make more income so that I can put in $200 or $300/month.
2007-06-20 18:12:52 · answer #1 · answered by Anonymous · 5⤊ 0⤋
Hi, Now then if you buy a term it is just like your car insurance, home health etc. After 20 years (if that is what you purchased) the policy no longer is in effect. Now, Cash value, is very deceiving....the agents say you have a savings plan, but they do not tell all the little facts inside the contract such as most universals, eat up the cash that you have already paid in. And usually, you pay in for 2 or 3 yrs, before there is any cash value inside...so you MUST ASK...what happened to My money? they will tell you it is administrative costs or whatever. So, think of it like this....put $1000.00 in a cd...go back 2 yrs later, and ask for your money, but the bank says, sorry that is our money. Would you put your money into a savings plan like that? so term is the only way to go for protection. period. Take the difference between the term premium, and the universal and find a higher rate of return. Remember this... what ever your rate of return is divide by 72 and that is how often yopur money will double. that is what the insurance companies are doing to your over-payment of premiums. Very period.
2007-06-20 11:42:16 · answer #2 · answered by Nebraska debtbuster 1 · 0⤊ 1⤋
Your Life Insurance May Be Worth More Than You Think
2007-06-20 08:25:23 · answer #3 · answered by leandar 2 · 0⤊ 2⤋
At - INSUREDEAL.INFO- you can get quotes in just a few minutes
RE Life insurance?
Say if you have taken out life insurance for yourself for 20 years and you dont die.... I know it sounds horrible.... what happens to the money you have payed in?
2014-09-08 22:09:01 · answer #4 · answered by Jessa 1 · 0⤊ 0⤋
For free insurance quotes
2014-12-26 23:41:03 · answer #5 · answered by ? 1 · 0⤊ 0⤋
term coverage -the place coverage is available for a particular era (usually a 300 and sixty 5 days, or for point classes which contain 5, 10, 15, 20 even 25 and 30 years) the place a loss of life income is in simple terms paid to the beneficiary if the insured dies in the time of the specified era. on survival no longer something is payable everlasting existence coverage is a form of existence coverage which contain entire existence or endowment, the place the coverage is for the existence of the insured, the payout is certain on the tip of the coverage (assuming the coverage is stored cutting-edge) and the coverage accrues funds fee.
2016-11-07 01:03:49 · answer #6 · answered by ? 4 · 0⤊ 0⤋
If it's term insurance, you were paying for the protection during the time it was in force, so the money is gone, you paid it to the company for that service.
If it's whole life, some of it has build up into a cash value for the policy.
2007-06-20 06:26:52 · answer #7 · answered by Judy 7 · 0⤊ 1⤋
That depends upon the policy. If it is a straight 20 year term policy it just stops, you get nothing back. Some term policies have a return of premium rider. If you have this type of policy you get the premium back. These policies cost more so most people don't buy them.
If it is a cash value policy such as a universal or whole life you can get the value of the cash account within the policy returned to you.
2007-06-20 06:25:19 · answer #8 · answered by Zarnev 7 · 2⤊ 0⤋
Help yourself you can check your quotes in internet for example here http://help.insurancetocompare.info/-qshliTV323
RE Life insurance?
Say if you have taken out life insurance for yourself for 20 years and you dont die.... I know it sounds horrible.... what happens to the money you have payed in?
2014-10-03 05:20:48 · answer #9 · answered by ? 1 · 0⤊ 0⤋
If you have a term policy than the insurance company keeps all the money if you out live the policy term. Check into universal life. It is designed to last much longer and you earn a cash value that belongs to you.
2007-06-20 06:53:36 · answer #10 · answered by Jason 2 · 0⤊ 1⤋