A person is considering paying $7200/Year for a 30-year, limited-pay whole life policy, or $1500/year for a 30-year term policy. The coverage is $500,000 for both policies. The person can invest at 5.9% and is in the 24% tax bracket.

If the person invests the difference between the whole-life policy and the term policy at the start of each year for 30 years and the return is taxable current- income, how much will be accumulated at the end of the 30 years?

Answer rating: 100% (QA)

Comparing Whole Life vs Term Life and Investment Strategy Heres how to calculate the accumulated amo... View the full answer