Company advertises $250k life insurance for $16 per month.
$250k/16 = 15625, /12=1300+years of premiums to break even.
What am I missing here?
It's term life insurance and it's only offered to people of the age that they are likely to outlive the term. i.e. you give a 15 year policy to some who's 30, they'll most likely live past 45, and they policy will never pay.
Many times it is actually accidental life and has an age termination, usually around 70 yrs old.
Natural death is not covered.
OK, thanks, now I see it. Limitations and exclusions prevent 99+% of all claims being paid. Sounds about right. Paper shuffle for cash.
> OK, thanks, now I see it. Limitations and exclusions prevent 99+% of all claims being paid. Sounds about right. Paper shuffle for cash.
Actually life insurance is a bet against yourself.
