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How does the math work for paying let's say 60 years times <$100 and cashing out $150k at the end?
by jkaljundi 12y ago
How does the math work for paying let's say 60 years times <$100 and cashing out $150k at the end?
- declan 12y agoI know other folks active on HN actually work in the insurance industry, and hopefully they'll jump in. But there are different types of life insurance. For most HN readers term life insurance (pay $100 a year for 10 years for $150K in death benefits, and then the policy ends) makes the most sense. There's no "cash out" at the end... There are other types tied to investment vehicles that go by names like universal and variable life insurance. Those can have certain tax advantages and can let you build that "cash value" you mentioned.
- wlesieutre 12y agoI assume that your rates go up as you age and get more likely to die. In your 20's it's only covering improbably illnesses and events like car accidents. But nobody's going to extend those same rates to you once you're 85 and already had two heart attacks.
- Houshalter 12y agoWhat if some improbable event happened like a major Earthquake or war or something that unexpectedly kills a lot of young people. Would the insurance company be able to pay out?
- Erwin 12y agoWho insures the insurers? The reinsurers: http://en.wikipedia.org/wiki/Reinsurance http://en.wikipedia.org/wiki/Reinsurance Interestingly, insurance actuaries here in Denmark has one of the highest incomes. 25% of those with the degree end up in top-1% income (vs 11% of those with a law degree). More (in Danish): http://www.business.dk/karriere/her-er-vejen-til-den-hoejeste-loen http://www.business.dk/karriere/her-er-vejen-til-den-hoejest...