Monday, February 25, 2008

Income Benefit

When you buy life insurance to protect your family, do you prefer that the benefit be paid to your family in a lump sum or in monthly installments?

I think that most people will answer is "both". It is useful to have a lump sum of say $50,000 and a monthly income benefit of $2,000 for 20 years. It may be useful if both of these sums are adjusted by say 2% each year, so that can offset inflation.

1 comment:

Yong Kiat said...

$2,000 for 20 years is $480,000!!!

How much roughly does it cost for someone aged 28 next birthday till 65 years old? Will it be cheaper than term or decreasing term?

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