Life Insurance Premiums?

For a $100,000 whole life insurance policy, for a man 32 years old which would require the highest FIRST year premium.
-Whole life paid-up at 65
-10-payment whole life
-20-payment whole life

Thanks for your help.

Oh... I need to know which one you think is cheapest... not go with Term insurance etc... Just curious with WHOLE LIFE .. thanks

The 10 payment whole life would be the highest monthly payment of all 3 because of a shorter time period to pay the premiums. Why the person is suppose to be paying the premiums until age 100. Since he wants to pay all the premiums by the 10th year, the monthly premiums will be very high.

The Whole Life paid-up at 65 would be cheapest monthly payment because of a longer time period to pay the premiums. However, it would be the most expensive over the long run because life insurance is never paid up. The premiums are either paid by you or it is coming out of the cash value. If the cash value is being used, the face amount of the life policy will be reduced by whatever cash value is being taken out, but premiums will remain the same.

I would recommend that you don't even think about whole life or anything else that has a so called savings tied with it. Check out consumer reports. You see you don't get the death benefit and the cash value, it is one or the other. You end up paying a lot more, when you could of bought term life and invested the difference. These insurance agent that are out there are always trying to sell this cash value garbage in which they are the ones who benefit from it. There is a company out there that sales 100% term 100% of the time.

Your highest premium will come from the 10 pay whole life.

I would suggest that you get a Life Time Universal life policy instead of a whole life policy.

The reason being:
1. The whole life policy is charging for the cash value guarantees and the death benefit. Which means it has a higher premium.
2. The Newer Life time Universal life policy Guarantees the Death benefit. To the extent that even with no cash value the Benefit is still going to be there.

3. A Universal life policy is adjustable: If you need to change your premium down the road then you can.

To throw a little twist into the pot.
The best value ( Cash spent Vs Benefit received) is in a quick pay policy.

The above is assuming that you are looking to have the benefit not the cash value. If the later is the case then I would use a different policy.

The paid up at 65 is cheapest, followed by the 20 pay, followed by the 10 pay.

And ALL of them will cost about 10 - 20 times as much as straight term insurance.

listen to debt free. whole life is this you pay for it your whole life, u die and then your family loses ALL the premiums u paid into it.

these are all paid up policies. the paid up @65 is simply a 33-payment whole life for someone 32 years of age. keep in mind that the death benefit (the risk or exposure to the insurance company) in this example is the same for all the policies, so to an insurance company actuary, you have to collect enough premium to offset the odds of a normal healthy 32 year old dying over time. all these policies do is condense the time the insurance company has to collect that amount of premium. so the shorter the premium collection period the higher each premium has to be. this is offset somewhat on the shorter term premium payments by investment return, but not by much. thus the 10 pay is going to have the higher premium.

If you will not need the insurance after 10-15 years, go with term. If you will need the insurance for longer, and you can afford it now, go with whole life with the longest premium period--in your examples, whole life paid up at 65.

Note: in any form of universal life, if the fund is exhausted, the coverage ends. There is NO benefit.

1. You may be seeing something that is designed to be paid on for 10 years or 20 years, but is not contractually paid-up after that period of time.
2. If that is the case, the "10-pay" and "20-pay" are different animals than the "Paid-up at 65" contract and the answer will depend on the dividend projections the agent is using.
3. Dividends cannot be guaranteed in any way and past performance is not an indicator of the future.
4. If they are contractually paid up in 10 years, 20 years, or age 65, the longer period of time you spread the mortality costs out, the less expensive it will be per year (that's your answer if this is a normal question).
5. If a 32 year old man only has $100000 of life insurance, he is probably under insured.

Couldn't tell if this is a homework assignment or an agent trick. Good luck either way.

The best thing you can do is do a free no obligation quote. It's totally free, no credit card required and pretty quick.

http://www.mb01.com/lnk.asp?o=1262&c=918...

Could end up saving you a fortune. Hope I was of some help.

- KingofWiki