my 10 yr is up and looking to renew, I'm looking at a money back term policy. Broker says no risk and in 20yrs I get my premium back and then some. Seems a little fishy to me but what do I know, anyone have any advice?
sounds like a VUL he is assuming will grow enough to be worth what the premium was... sounds like he may be breaking the law presenting it that way............ ask him to put it in writting
the one I have covers racing, I pay as much as a smoker but I'm covered. Not many cover it, your right. The underwriter says racing is okay, who knows
did a little snooping and got ahead of myself, these do exist but I had never played in that area.. at first look they are so much more expensive than plain term you could invest the diff and reasonably expect to come out ahead.. looks like more of a gimmick/sales tool by my math but if your happy with it why not.... I'd just be happy you found coverage while racing as that is tougher, just make sure you know if they will write it but exclude racing
Dave Ramsey doesn't know everything about everything. Not everyone's financial situation is the same. He uses too cookie cutter of an approach for me to listen to him.
It depends on several factors, but I'm thinking that it is cheaper getting quotes online. Some of the top insurance companies offer discounts when ordering online, because it is less work for them: http://www.quotes-center.com/life-insurance-premium-calculator
Brian964, you signed up on this board, all the way from Israel just to post about life insurance? What motorcycle do you race?
I've been paying like $1200 a year for coverage (because of racing) and figure if I have to pay double that but get it returned in 20 years its a no brainer. Shit just seems fishy to me, always a catch to something. I understand they invest my money and make money on it but I feel in 20 years I'll get fucked some how.
So if that is the case and you have the money to spend then why wouldn't you continue paying your $1200 a year policy and throw the other $1200 a year that you would have spent in some sort of mutal fund. You are going to come out way better, statisticly, than paying for the money back policy.
because the $1200 I'm paying now I'll never see again, return premium policy I get it all back and then some. The moneys not a problem because it's retirement loot. I dont mind cause its stashed for my midlife crisis
Universal life insurance is one of the worst financial vehicles available, you would be better continuing a term policy and investing the difference on your own. They will eat up a good deal of your earnings with fees and expenses (often keeping the first 3 to 5 years of your premium + dividends). I would also be very surprised if your premium was not going to go up by way more than 2x compared to a term life policy assuming your keeping the same level of coverage.
I agree. I looked into this years ago, and the annual return was pathetic. Most of these policies are also variable, so it wouldn't have done any better in the crash. Had a 30 term policy that i got 8 years ago. Only exemptions are acts of war, riots, and partaking in a crime. None of which are on my bucket list at the moment
this is what I was quoted $3180 a year for 1 mill 1-10 years outlay is $31800 cash value is $16068 11-20 years outlay is $63600 cash value is $63600 after 20 yrs is up, I get $63600 back. This is with prudential. The limited paperwork I have says I get all the premium back in the 20yrs.
wow, thats crazy expensive and the get 20 yrs to play with your cash... just for giggles go to selectquote.com and see what cheap term would be then you can figure the interest you'd have to make on the savings to end up with 63k at the end it bet it isn't much and you don't kill your cash flow... worth doing the math but again it's really what ever you feel best with. looks like you are giving them a 20yr interest free loan
I'd read the fine print. The company I work for offers a return of premium on term insurance; however, looking at the time value of money, you are still losing out. IMHO for the long term, if you really are looking to generate value, look into whole life from a strong company or buying a straight term and investing the rest.
