What do you think is better having life insurance or depositing that same amount into a savings account?

Question

the way i see it

is that you deposit...$100 per month X 12 = 1200 and lets say nothing happens in 20 years = $ 24000 that you get without hasel and without having to face insurance BS, What do you think?

Answer 1

Here's another thought: Say you put $100 in the bank and die tomorrow. Your family has $100. If you used just $20 to buy a $100,000 term policy and die tomorrow, your family has $100,000. There's no guarantee that you will live through those 20 years to get your $24,000.

Answer 2

The primary purpose of life insurance is to replace your lost income should you die - for the benefit of your survivors.  Your mistake is in thinking of life insurance as nothing but an investment.

Answer 3

I don't know what kind of "BS" you're referring to. If you purchase a policy, as long as you keep paying the premium, you never have to talk to anyone else about it.

Judging by your lack of info, I'm going to assume you're pretty young. If you're under 30 years old, $100/month will probably buy you $2million of term coverage for 30 years. I would say that's a little better than you're $24k. Keep in mind, 20 years from now, $24k will probably be the price of a stipped down Chevy Aveo. It's just NOT that much money.

If I were you, I would take out a 30 year term policy for around $250,000. This will probbaly only cost you $25-30/month, and it would make sure ALL your debts are paid should you pass.

Also, if you take the other $70-75 and invest in some good mutual funds that average around 12%.......you'd have just shy of $75,000 in 20 years. Just something else to think about.

Answer 4

The key is "If nothing happens". Do you have car insurance? Home owners insurance? I can tell you one thing you might never file a claim on your car or your home but I guarantee one day you will die.

The questions is will you have life insurance?

Why not put $80 in the bank (or better yet an investment) and spend $20 on a 30 year term policy?