[quote=flu]The 20 year term life insurance I bought when I was in my early 30ies was a $500k policy for $700/year roughly (it was probably higher than I could have paid, but at the time I wasn’t exactly the fittest person…that’s even before I was diagnosed 2 years later with really screwed up health issues that today would make me uninsurable.
In the grand scheme of things, over the course of 20 years,
I’ll be paying $14,000 for peace of mind, in case something does happen. For most people, you’ll make it past the 20 years term and the insurance policy will expire without a payout. For some of you less fortunate people (inclusive), you might have a brush with death. So yes, in most cases, the insurance company will win and collect your premium without haven’t to pay you out. In any case, I think this is one of the things you don’t want to win and maximize your positive returns on 🙂
If your mortgage is paid off, if your retirement funds/savings/investment funds/ real estate investments/etc are all doing well, you might not need life insurance. For me, it’s the question of whether I want to save the remainder $7000ish in premiums and drop my $500k insurance that hopefully won’t be needed.[/quote]I totally agree with this. I view life insurance along with many other insurance as a price for a peace of mind. Some people are more willing to roll the dice than other. There’s no right or wrong, just what give you that peace of mind.
I got a $1M 30 year term in my late 20s and it costs me $1k/year. So, I figure, for $30k, I have a $1M piece of mind if something happen to me. I don’t want to win the ROI game on this one. I want to make sure my wife has enough to maintain our current life style with me gone. At $1k/year, that’s ~$3/day. That’s not too crazy. I’m sure most people can find way to save $3/day.
