Maybe I just don’t understand what they’re doing. BUt it seems to me if I take out a 10 year policy that costs $100 per month, I’m betting that I’m going to die within that period of time and the company is betting that I won’t or that they won’t have to pay out. If I get to the end of that 10 year term, then I’m just out $12,000. What am I missing?
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I am a 25yr financial planner and have two 30yr term policies, taken out when each of my kids were born. They are there to replace my income through getting my kids out of college and as my wife reaches retirement age. Term insurance is like car or homeowners insurance. Just because your house didn’t burn down while you owned it doesn’t mean having homeowners insurance wasn’t worth it. I built a house 10 years ago and for the first time ever, I made a homeowners claim last February. Had a dishwasher leak which resulted in insurance basically renovating my entire kitchen.
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