A family friend is trying to sell me life insurance. Death payout is $500k.
If I don't die then my payout after 36 years is $246k. My premium is $404 per month. So that's $174k of initial investment. Sounds like a total return of 141% in total after 36 years. In any case I can take the money out at any time it's not locked in.
Return is 4% guaranteed per year plus an extra 1-3% depending on the market.
He said there are no management or advisor fees. He probably gets a commission but we didn't discuss this.
He said it's such a good deal he got it for his kids when they were young.
What am I missing? Why shouldn't I get this? How can 4% be guaranteed per year when 30 year Treasuries only yield 3.1% right now?
Link to marketing presentation: https://m.imgur.com/a/MMhps
EDIT: Total return is 41% not 141%, sorry for the incorrect calculation and thanks for correcting me.
Submitted March 03, 2018 at 02:00PM by DrMcNutt http://ift.tt/2FNf929
