Insurance

[LSRISING]

What is the name of your state? NY
What is life insurance? What is term life insurance? What is whole life insurance. I'm very confused. How come you can pay $40 per month for 10 years and only get $5000 upon death. How much to have to pay for your beneficiary to receive much more like $100,000?

 

[cbg]

Life insurance is a form of insurance where you pay premiums now and your beneficiary receives money when you die.

Term life insurance does not grow. If you buy $50,000 of term insurance, your beneficiary will recieve $50,000. It is usually less expensive. Private term insurance often expires at a certain age, for example term 75 would mean that if you are still alive at age 75, the policy expires. If your employer provides group life insurance it is probably term. $40 a month for a face value of only $5000 seems awfully high to me. Are you sure you don't mean $50,000?

Whole life insurance grows. You receive interest on the face value so that if you buy a policy with a face value of $50,000 your beneficiary will receive more than $50,000. Whole life insurance does not expire. It costs more than term.

I couldn't possibly begin to tell you what you would have to pay to get a face value of $100,000. It would depend on your age at the time you bought the policy, your health, what state you live in, and what company you buy it from.