The Motley Fool Discussion Boards

Previous Page

Financial Planning / Insurance - Life, Car, Home,etc.

URL:  https://boards.fool.com/death-penalty-of-b-death-penalty-of-b-is-34098007.aspx

Subject:  Re: Long term care article Date:  1/2/2019  5:24 PM
Author:  PSUEngineer Number:  18110 of 18165

Death penalty of B: Death penalty of B is $550,000. I pay a monthly premium of $973.50 for 20 years (240 payments) and then the policy is paid up. At the end of year 25 when I am 89 and ready for a nursing home, the Death Benefit is $550,000 and the guaranteed CSV is $309K but the non-guaranteed amounts are Dividend of $4,578, cumulative paid up additions of $71K, net CSV of $349K and net death benefit of $621K.

One article I read said the worst 20 year rolling average since 1979 was an average return of 6.4%. If I calculate the total amount for investing $973.50 monthly for 20 years at an average return of 6.5%, the total is $477,428. If I then stop the monthly investments for another 5 years, the total becomes $660,196. It seems you are giving up quite a bit of return for some insurance.

PSU
Copyright 1996-2019 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us