[quote=“larciel, post:10, topic:2368”]
Yes I did put in mid-tier level for her health condition.[/quote]Sorry, but this discussion is absolutely pointless at this point. There is simply no way for you to know what rate your mom will and will not qualify for. Until and unless she applies and actually receives an offer, you have absolutely no idea what the premiums might be.
Having said that, if you try to use term life insurance as an investment, it is highly unlikely to produce the returns you are looking for. If you look at the premium structure that you’ve posted, you will see that the insurance company, which has a ton of mortality data, is estimating that over the term of this policy on average there is roughly a 1%-2% risk of death in any given year. Over the length of the entire policy, the risk of death is roughly 23%-25%.
In other words, assuming that she does qualify for the above premiums, there is a roughly 75% chance that your premiums will result in absolutely no return over a 20 year period. This is the exact reason that term life insurance should NEVER be used for investment purposes. Instead, it is intended to be used for situations where the person’s death would cause a devastating financial blow to the survivors, which term life insurance would address. These are the types of circumstances under which it makes sense to accept the extremely poor odds of payout, as you are trying to protect against a financial calamity.