Used to be an Insurance Agent, quit after finding out that the agents themselves don’t know what they’re selling.
Anyways, in general, when you buy an insurance, you are “investing” in the assurance of your dependants in case anything happens to you prematurely, you hope that the Sum assured will be sufficient to support your dependents when you’re gone.
So the only way you can “earn” from these policies is if you pass away prematurely, early into the policy, when u have paid less than the Sum assured. In this case, if you have paid for only the first few years and you pass away, you’ll still get paid $30k.
The Insurance Agent that sold this policy to your late Mom,sold a policy that was meant to protect someone with dependents, when she just wanted a savings plan for her kids. Essentially, the agent sold your Mom apples when she wanted oranges.
The agent was a misleading prick but I don’t blame them, because salesmen who can sell things to you even when you don’t need them, are considered “good salesmen” in our society.
Life or term insurance are not meant to make you richer. They’re not even meant to protect you, they’re meant to protect your dependents. So if you’ve got a newborn at 27, then you can buy a life or term insurance, in case you die, your dependents can use the sum assured payout to support themselves.
However, if you are 60, your dependents probably have their own jobs already and no longer need your help financially, then you shouldn’t buy a life or term insurance. Instead, spend more on medical insurance, add riders that will make sure you or your kids don’t need to pay a cent in case you fall ill and hospitalised.
So blame all these insurance companies that encourage their agents to sell their policies at all costs no matter the needs of their customers, but don’t blame the structure of the policies because they’re useful for people who understands it. A drop of water means more than a bag of Gold to a thirsty man. Don’t buy a hammer to eat your noodles with when you need a fork.