| Return of Premium Insurance Plans: Are They A Good Idea ? |
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oldguy
Senior Member
Cash: $ 751.85
Posts: 3656
Joined: 21 May 2006
Location: arizona
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Actually, a ROP is a poor investment - you will do better by investing the extra premium cost into a generic mutual or index fund (which is what the insurance company will be doing with your money).
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Mon Nov 15, 2010 8:32 pm |
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oldguy
Senior Member
Cash: $ 751.85
Posts: 3656
Joined: 21 May 2006
Location: arizona
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You are way off base, the premium for a $100k, 10 yr term is about $11/m, ie $130/yr. If you are paying $480 you are being grossly overcharged.
Think about what you are saying - why would a business (the insurance company) give you a 27%/yr return when they can borrow that money from a bank and give them only 6% or 8%?? They aren't stupid.
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Tue Nov 16, 2010 2:44 am |
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