I am not an agent. I am someone who is going to buy life insurance next week, and looking for a few answers. So I figured, where should I look for my answers if not here, among life insurance professionals.
Here is my question... hope to find an answer here.
I am a divorced mother with 2 teen kids. I am applying for a life insurance. I have been thinking to get a term one. To secure my kid's colleges and future mortgage (I'm planning... well, better say, dreaming to buy a small condo in a year or two).
Now, the agent put together a table for me, showing net premiums, cumulative net premiums, cash value and death benefit.
Very first thing I notice, is that, say, I pay 3,500/year for 40 years. I reach age 80, for example. My net premium for all this time is 3,500/year, my cash value about 357,000 (current), and face value is 503,000 (current). If something happens, insurance company pays FACE value only, right? So my cash value is... gone. Which means as far as I understand, that in reality in the end I pay for WL not only my premiums, but also the cash value. Premium plus cash value, that the insurance company takes in the end - THAT is a real price of my WL. Or , in other words, the real value my beneficiaries would get is 503 - 357 = 146. Answer: 146,000.
Am I missing anything?
Here is my question... hope to find an answer here.
I am a divorced mother with 2 teen kids. I am applying for a life insurance. I have been thinking to get a term one. To secure my kid's colleges and future mortgage (I'm planning... well, better say, dreaming to buy a small condo in a year or two).
Now, the agent put together a table for me, showing net premiums, cumulative net premiums, cash value and death benefit.
Very first thing I notice, is that, say, I pay 3,500/year for 40 years. I reach age 80, for example. My net premium for all this time is 3,500/year, my cash value about 357,000 (current), and face value is 503,000 (current). If something happens, insurance company pays FACE value only, right? So my cash value is... gone. Which means as far as I understand, that in reality in the end I pay for WL not only my premiums, but also the cash value. Premium plus cash value, that the insurance company takes in the end - THAT is a real price of my WL. Or , in other words, the real value my beneficiaries would get is 503 - 357 = 146. Answer: 146,000.
Am I missing anything?