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Comment by o-__-o | Hacker News Reader

A 10 mil life insurance policy would require underwriting and, assuming you are healthy, will run between $60k and $120k a year. As a faceless corporate board member, why not just let you flounder while instructing management to find an engineer that is not as expensive?

I think inflation is gonna bite a lotta people in the near future

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> A 10 mil life insurance policy would require underwriting and, assuming you are healthy, will run between $60k and $120k a year.

That's bonkers - a £10 million policy was quoted to me at £4.5k a year.

No, that sounds about right - maybe you are looking at a different kind of life insurance. Just take the SSA yearly chance of dying (the real chance of dying is likely less if you are healthy, but on average this should be the price) from [0] and multiply by 10 million. Only 16k for a 25 year old but around 160k for an average 65 year old.

[0] https://www.ssa.gov/oact/STATS/table4c6.html

> Only 16k for a 25 year old but around 160k for an average 65 year old.

I mean you can just go on a price comparison site right now for yourself and see that this isn't even remotely the price quoted for multiple providers and a wide range of levels of cover - nothing is even remotely close to even 16k.

I think those quoting huge costs are looking at whole life whereas the rest are looking at term life. Looking at one place, if you're 30 years old, and getting only 100K for whole life, the premium is over $1400/yr. Multiply that by 10 for 1M and it's 14K/yr.

People often get these expensive plans because they can treat it as a retirement fund, and can borrow against it at any time with no penalties, etc. With term life your premiums are wasted if you cancel at 65. With whole life, you get back your premiums, and their growth (you may be able to control the investment vehicle as well).

Isn’t that life assurance not life insurance?

Wow I’m paying 500/year for $1M 20 year term. That’s where I estimated my numbers from.

From my perspective term makes more sense. I will have a net worth over $1m in 20 years and that’s more than enough for my family to survive on. The insurance is mainly for my family in case something happens to me in the near term.

A term policy is more, I’m not sure what the rates are for non-term but I wouldn’t buy a non term policy. That’s literally throwing away money, but I guess from a business perspective it’s just a cost so you may be “more” right :)

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