12-11-2014, 04:08 PM
Hi Stephen,
Why more worth it when pass away before 87/88?
Without going thru calculations, what I see are the following scenarios:
1. From 1 to 40, without calculating time-money value, you pay less premium for insurance, so term should be more worth it, and also add back your bond investment.
2. From 40 to 65, your bond investment should be able to offset the premium paid during the period, so term should still be more worthwhile
3. From 66 onwards, if buy term, you left with the bond investment, which based on your calcuation, will hit $100k at age 87/88. So from 65 to 87/88, maybe wholelife will be more worthwhile. Thereafter, buying term will be more worthwhile.
So I guess whole life only give an advantage for the 20 odd years from 65 to 87/88?
Anyway, since you looking at buying term, why don't consider one that cover up to 99yr old? Then the coverage will be same as that of the whole life plan.
Disclosure: I had recently bought whole life plan for my 2yr old, but the plan includes early CI cover until he pass away. The plan does not stop at age 99.
Why more worth it when pass away before 87/88?
Without going thru calculations, what I see are the following scenarios:
1. From 1 to 40, without calculating time-money value, you pay less premium for insurance, so term should be more worth it, and also add back your bond investment.
2. From 40 to 65, your bond investment should be able to offset the premium paid during the period, so term should still be more worthwhile
3. From 66 onwards, if buy term, you left with the bond investment, which based on your calcuation, will hit $100k at age 87/88. So from 65 to 87/88, maybe wholelife will be more worthwhile. Thereafter, buying term will be more worthwhile.
So I guess whole life only give an advantage for the 20 odd years from 65 to 87/88?
Anyway, since you looking at buying term, why don't consider one that cover up to 99yr old? Then the coverage will be same as that of the whole life plan.
Disclosure: I had recently bought whole life plan for my 2yr old, but the plan includes early CI cover until he pass away. The plan does not stop at age 99.