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THE SCENARIO
Note: There are a lot of factors involved in life insurance policies (e.g. riders, cash value, and many more), but I'm going to be simplifying here to make the situation easier to understand and analyze.
I was looking recently at two life insurance policies, and trying to determine which one, if either, to buy.
One is a Permanent policy, meaning that its terms are set today and never expire, and as long as the premium is paid, the policy will pay out on the death of the insured, no matter how far in the future that might be. This policy costs $400 per month, and pays a $500,000 death benefit.
The second is a Term policy, and it expires after 10...
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