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Subject:  Re: insurance buyout Date:  12/9/2000  6:02 PM
Author:  JLC Number:  26515 of 88775

I get slightly different numbers using Quicken's Savings Planner.

$410/month, 16 years(192 months), 6% gives $69490.
$410/month, 16 years, 10% gives $101,811.

$31,435 lump sum, 16 years, 6% gives $43,232.
$31,453 lump sum, 16 years, 10% gives $81,643.

Possibly the difference is your interest my be compounded monthly where as I did it annually.

Either way, if you don't need the money to live, you're better off taking the pay out over time. Their lump sum pay out needs to be about $51,234 for there to be no difference. Why else do you think they made that offer? Insurance companies try to work things to their benefit.

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