L
Life Insurance Analyst
Guest
Assume husband and wife are 30 years old
A) Whole life insurance
Husband: $75,000 coverage
Wife: $75,000 coverage
Total coverage: $150,000
Monthly premium: $113/month
B) 30 year term insurance
Husband: $250,000
Wife: $250,000
Total coverage: $500,000
Monthly premium: $65/month
If they invest the difference of $48/month for 30 years,
@ 0% return: $17,280
@ 4% return: $33,425.42
@ 8% return: $72,012.17
@ 12% return: $169,435.86
Would you go with A or B?
A) Whole life insurance
Husband: $75,000 coverage
Wife: $75,000 coverage
Total coverage: $150,000
Monthly premium: $113/month
B) 30 year term insurance
Husband: $250,000
Wife: $250,000
Total coverage: $500,000
Monthly premium: $65/month
If they invest the difference of $48/month for 30 years,
@ 0% return: $17,280
@ 4% return: $33,425.42
@ 8% return: $72,012.17
@ 12% return: $169,435.86
Would you go with A or B?