lawman3966 wrote:A friend received an offer to buy term life insurance for a family member for a specified period having a benefit amount of $10,000. Apparently as an inducement, the promo literature noted that once the period expires, the beneficiary could retain the policy in the form of a Whole Life Policy and have a cash balance therein. The premium was quoted as being about $75/year for four years.
The blurb from the insurance co did not say what the cash balance would be after the four-year policy period expired. I was wondering whether, based on experience, anyone here can provide some indication how such balances are usually calculated. (I don't want to call the ins co in connection with another person's policy).
dhodson wrote:Nobody can say for certain with the info you provided but I'd say about 20% of the total premiums paid for the whole life.
dhodson wrote:the death benefit would be worth 10k so if the person dies then the statement is accurate. Otherwise not likely so.
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