Financial Information
Is Permanent Life Insurance for my mother in law who is 75 a good deal for $275 a qtr for $10K policy?
Question : Is Permanent Life Insurance for my mother in law who is 75 a good deal for 5 a qtr for K policy?
or should I just save the $ 275 a qtr and put it on the side if something should happen to her?
permanent life insurance
Best answer:
Answer by Bored.
It might be best to save it yourself. It really depends on the plan though. Many plans don’t kick in fully till a couple years after it started. (hope this doesn’t happen) say she passes in a year, you may only receive a very small portion of the benefit, possibly less than you paid in.
You really need to read the plan over top to bottom and find the best plan for your family’s needs.
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#2 written by mbrcatz 1 year ago
Do the math! If you put the $ 1100 a year in a CD or money market, and she lives more than 8 years, you’re ahead of the game just putting it in the cd. But if she lives fewer than 8 years, then you’re ahead of the game buying insurance.
How long did HER mother live? How healthy is she?
Those are the questions you have to ask yourself.
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In this situation, you are better off buying an annuity for your mom. Annuities are contracts purchased by an individual in which an insurance company pays out monthly payments to the individual beginning on an agreed-upon date and guarantees the individual the payments will continue no matter how long he lives.
An annuity has 2 phases. In the first phase, you are accumulating money for the future. In this phase, you are guaranteed a minimum death benefit by how much you put into the account. For example, if you put in $ 10,000, you are guaranteed a death benefit of at least $ 10,000. If the account value is more than what you put in, all of the gains will be included in the death benefit.
The 2nd phase is what I like to call payout phase for the rest of your life. When you start withdrawing money, you lose the death benefit, but it will provide you income for the rest of your life.
Is annuities for everyone? Definitely not. They have higher annual expenses than a normal investment and it is highly not recommended for young adults. Not only that, you need large amount of money of at least $ 5000 to start it up or you can put away $ 250/month to $ 500/month into it until it reaches $ 5000. But for your mother in law, I believe this is the best option.
When you setup an annuity, it must be in your mother-in-law’s name and you can name yourself as the beneficiary.