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Financial Planning / Insurance - Life, Car, Home,etc.
|Subject: Re: Last to Die Insurance||Date: 4/7/2001 9:19 PM|
|Author: intercst||Number: 6093 of 17919|
First of all, I don't think you read closely enough. The total death benefit consists of :
(1) The Original Sum Assured
(2) The Return of All Premiums Paid
(3) The Interest you WOULD HAVE earned had you invested the premiums elsewhere at an after tax 6%
I agree that six percent isn't terribly impressive - IF we are talking about a simple return on investment. However, we aren't. We are looking at a plan that has this IN ADDITION to the orginal amount of insurance AND getting all the premiums back.
While I am impressed with your ability to find charts and reproduce them here, I don't think you have proven that you can be assured to do better than the guaranteed TAX-FREE benefits available with Life Insurance. There is no better way to handle your estate taxes.
I guess it depends on the size of the death benefit and how much of my money the insurance company has tied up at a paltry 6% investment return. Guarantees get pretty expensive when what you're guaranteeing is pretty close to a worst-case investment return.
I agree that life insurance is a wonderful "investment" if you die early or young. It just not that an efficient "investment" vehicle if you live to a ripe old age -- even if it is tax-free.
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