Nov 10 2023, 04:11 PM
QUOTE(devilmaycry9 @ Nov 10 2023, 03:56 PM)
Actually what happen with those plan let say coverage till 70 yrs old and auto extend till 100. what does that mean? if i read the policy it will continue after age 70 if there is "saving" or cash value left in the account. am i right?
Insurance is like a prepaid account nowadays.You pay your premium monthly, but your actual cost is the annual insurance charges and some commissions + service charges by insurance company.
When you’re young (sub 50), the annual insurance charges is actually just few hundreds, hence you effectively saved up a large sum of your premiums as savings/cash value into your acc.
As you grow old, the insurance charge will grow exponentially, up till like you’re 70-80, it’s costing over 10-20k per year and burning out whatever cash value you saved till then in no time.
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