Hi,
I recently got life insurance and illness insuance. I'll be paying around $225/month. Ouch,
im only 20 and my dad said after 20 years my life insurance would be free and i'll be able to collect all the money back which i gave to the insurance company plus interest. I asked the insurance company and they said if i take out the money when im 40 than they would give me about 30K or something, but if i take it out when im 65 years of age, the money i'll be able to take out would be around 300k.
Is this how most insurance companies work or is this something fishy? i still don't have anything in writing since i just signed papers last friday i believe.

thanks

Life insurance is NOT an investment, and Insurance marketed this way is ALWAYS just a "legal scam". I am surprised your Dad doesn't see that! (It's a favorite product of agents to SELL, because it PAYS them huge commissions..).

You should only buy life insurance to insure your life! At 20, if you are unmarried with no kids, YOU DON'T NEED IT. If you put $225/month into a very average mutual fund, by the time you are 40 it will be worth $170K....if you "take it out" at 65, it will be worth about $2.1 MILLION

If you additionally purchase "term life insurance", it will cost you pennies a day instead of $200+ a month, and if you die, your heirs will get enough money to live on for a little while.

Life Insurance investment isn't "fishy", it's just a legal scam...they just take your $225/month and invest it for themselves...if you die, they'll have plenty of cash to pay your heirs;if you don't die, when you reach 65 they'll give you $300,000 and keep the other million and a half for themselves!