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It is a life insurance policy, but that isn't the only difference. A key point for me is that google employees are ensured to a very high level without having t
by Shebanator 14y ago
It is a life insurance policy, but that isn't the only difference. A key point for me is that google employees are ensured to a very high level without having to send the insurance company the results of a medical exam. Most companies I've worked at can only insure you to 2x or 3x your annual salary without the exam, and they charge you extra to provide even this level of coverage. Google's policy is slightly better than 5x.
- yummyfajitas 14y agoGoogle's policy is slightly better than 5x. If you ignore the time value of money. Google's policy is 5x your salary, but spread out over 10 years. Much better (for you, worse for google) to get the cash up front.
- Shebanator 14y agoIts true that theoretically the value of 3x up front is in the same ballpark - but only if you invested all of it wisely. But in reality my wife would need to use the entire benefit to pay down our mortgage and refi, so those theoretical gains mean little. Meanwhile, she has to somehow get enough income elsewhere to pay what is left of the mortgage, our kids college, etc. Knowing there is some real level of income security for 10 years is way way better.
- Evbn 14y agoPaying down principal is a postive return investment strategy, equal to your interest rate (minus tax deductions).
- Dylan16807 14y agoIsn't the mortgage a high interest rate compared to investment? That should save you even more money.