Who wants life insurance? Not me. If I die, I don’t get any benefit. True, but those who count on you will.
Yet when asked to estimate the cost of $250,000 term life policy for a healthy 30-year-old, most people guess around $500 per year or more.
The average cost of such a policy is closer to $160 per year, suggesting over half the population thinks term life insurance is over 3X more expensive than the true cost.
Two categories:
Term – Term is a fixed period, like 10 or 20 years with benefits designed to cover mortgage, tuition, living expenses.
Cash Value Policies – whole life, indexed, universal – have both a death benefit and a cash accumulation. You die, beneficiaries get the funds (like Term). You have built a nice nest egg.