If a person is paying $20,000 a year for life insurance, how much of a payout would they be getting? -

do you wanna kill somebody for the insurance money? depends on how much the policy is worth If there is anybody that is paying that much for life insurance, they are crazy!!! The answer depends on many variables, the largest being their age. My first suggestion would be to avoid life insurance companies (and banks) for any investing purpose's. if he star Early in life he may collect 2 to 3 millions by the age 80 . Depends on their age and health and the type of policy...you don't have enough here to figure this out. They won't care they're dead. it depends on the age of the person, but thats still extremely excessive. If thats how much they are acually paying the death benefit should be an enormous amount of money I went to http://www.quickquote.com/ and entered my own personal information to obtain a term life insurance quote. Based on my answers to the questions asked, I could purchase a $10 million term life policy based on an assumed payout within 20 years. Guess what! I am not 30 years old! : ) The annual cost ranges from $15,000 - $21,000 a year, depending on the company. Uh, my dad pays about $500 a year, and his policy covers $250,000 for natural causes, $500,000 for accidental. Who the hell are you insuring, Bill Gates??? That's WAAAAY over-priced insurance, but it would give a VERY considerable amount of coverage. Nobody pays 20K a year for life insurance. it all depends on the age of the person. if the person is already in their 70's or 80's it will not be near as much as somebody in their 20 or 30's It's completely not related. It could be anywhere from $20,000, to maybe $5,000,000. There's NO way to know, except to ask them. There are SO MANY variants involved in calculating the amount of premium to be paid in regard to benefit amount. Age. health, and gender at time of application. Choice of type of insurance: Term, Universal ,Whole Life or Return of Premium. If they're paying $20,000 a year into the life insurance, they'll be getting a lot! Most people pay a fraction of that a year and still get a sizable ammount back. There is no way to know without knowing more about the insured individual (at the time they were insured) and the general type of policy. Then we could make a decent guess. If this is a riddle, the insured doesn't actually get any payout because they will be dead at claim time. It goes to their estate or a named beneficiary.