My mom called me the other day saying that, with her about to hit retirement, she is cutting some costs. One of those is a life insurance policy that was handed down to her when her own mother passed away last year. She already has her own for us, so this one is just extra and she can cash it out.
My two older brothers are pretty well set, and declined to take on the monthly premium. So she asked me if I wanted to...
It's about 70 USD a month for as long as she lives. The payout is 140K.
She is fairly healthy, nothing life threatening currently. Super fit, she cleans homes for a living and is very active. She won't like me saying it, but she's about 60 years old, and our family members tend to live longer than average life spans.
Our great grandma was like 94, and my grandma I think was 89.
So if I were to assume that my mom lives until about 90, that's about another 30 years of premiums. I'd be 65 by then.
70x12= 840 USD a year.
840x30= 25,200 USD for 30 years.
140,000-25,200= 114,800 USD payout total.
When I look at it that way, that seems like a pretty good deal. But there are also lots of different factors that go in to it. Like, inflation. Lost opportunity costs. Maybe she lives to be 110? Etc...
What would that 70 USD a month look like in 30 years if say, I just put it all into BTC? Or HIVE? Or LEO? Or pick any other crypto, stock, bond, or investment opportunity.
I'm currently not sold in either direction. But would love some outside perspective from people who may have had similar investments or insurance plans in the past.
What would you do?