Who clicks on those by the way? Let me go through an example of someone I recently worked with and how he grew the money he wanted to leave to his wife and children by leaps and bounds.
I will call him John for example's sake.
John is 61 years old and he wanted to leave $100,000 to his wife and children when he passed away.
He had life insurance through the police department, but he was retired now and his $10,000 whole life policy wasn't anywhere near that $100,000 mark.
I showed John how he could pay $155.
75 a month into a universal life policy and it would give him that $100,000 benefit he was looking for.
That's not too bad.
The best part comes when you look at what he gets for his money though.
These details are where you will see the great value in life insurance.
If John lives to age 100, he would have only paid $72,896 for the $100,000 left to provide for his family.
That's over a 1.
5% compounded interest earning on the money paid in, but most people don't live to 100.
If he lived to age 90, the money would have had to earn almost 3.
9% fixed to grow to $100,000.
The current life expectancy for a male is 76.
Not to be bleak, but he would have paid in less than $29,000 and his family will receive $100,000.
Which would be the equivalent of earning over 13.
5% fixed return on your investment elsewhere? Yes $155.
75 is a large amount to pay for many people in John's shoes.
I know some people who talk with their children about paying a portion of the premium payments.
What if you sat down with your children and asked them how much money they wanted you to leave them? Well they may be able to help you leave them more.
The keys to leaving more to children with life insurance are simple: Start as young as possible, get in good health, and ask the kids if they want to come on board if you aren't in a position to pay into a policy.
Please don't wait until you are 75 to start looking at your financial legacy.
Be responsible and put a plan in place when you are younger.
That will give you some room to tweak your objectives along the way as your needs change.