The Truth About life insurance
The bottom line is with a cash value life insurance policy you will not be able to retire a wealthy person. What you get is a fixed value policy with very little return. So if you are asking how much does life insurance cost look at the following examples before you make a decision on either term insurance or whole life insurance.
If you have $100 to spend on life insurance you would possible get $125,000 on average life insurance for your family and the insurance companies will predict great returns but you can spend only $7.00 per month on level term assurance which will give exactly the same life cover - so if no returns are to be had with life insurance where does the $93.00 go?
The answer is expenses and commissions - this money disappears to cover these in the first three years after that the return will be on average 2.5% per year for whole life. Worse still after you have paid all this money out any extra returns do not go to your family on the event of your death the only amount your family receives is the face value of the policy that is $125,000 in our example.
So you would be better off with the $7 per month policy and save the left over $93.00 in a money box !! - However what would would be better is look at other investments such as mutual funds and try and build up a fund that will look after you in your retirement but in the event of your death your family get the pay out from the level term assurance plus the funds you have managed to accumulate.
So the truth about whole life insurance is don’t do it !!! buy a term policy in order to protect your family and invest the rest.
Find out what is the average price of life insurance and the protection it will give your family before you make any decisions because the big question of how much does life insurance cost varies from person to person depending on individual circumstances