Life insurance as an investment
Buying life insurance is an investment - and a wise one at that. Read on to learn how life insurance can be beneficial in a number of ways.
There are many misconceptions about life insurance, which prevents individuals from getting the protection they want and need. Don't let these myths stop you from purchasing life insurance for your family! The myth that a hefty tax bill awaits you upon death can actually be refuted by planning ahead with tax-free investments during your lifetime. Another myth: no survivors will benefit if there's a substantial amount of cash value built up in the policy. In truth, loved ones can receive flexible protection through a life insurance cash value account. Two other myths: cashing in a life insurance policy is always the best way to get money quickly, and it's necessary to have $500,000 in coverage for a young family with children.
On the contrary, you can use some of what you've paid into your policy to obtain immediate financial help should a crisis occur. Additionally, purchasing smaller amounts of coverage earlier in life enables you to build up enough cash value in your insurance policy later on to help pay final expenses such as funeral costs. Also, in terms of the original $500,000 myth: it is not necessary to have this much coverage for you and your children. In fact, the smaller the face amount, the less you will pay in premiums.
You can purchase a policy that gives you and your family enough coverage to protect what is most important to you - including final expenses and outstanding debts. The choice of adding an inflation rider (a cost-of-living protection provision) enables your beneficiaries to receive a greater payout than if you had purchased a policy without inflation protection. Life insurance not only offers a financial safety net in times of crisis; it also provides money for future dreams and needs. Purchasing life insurance is essentially an investment - one that provides peace of mind now and financial security in the future.
On the other hand, some young couples might be hesitant to buy life insurance. Just as in any investment, careful planning can help you make wise choices about which form of coverage you should purchase. For example, it's important to research the quality of the underwriters' rating system and firms' financial performance record. The more precautionary you are, the less likely you will experience regret over your investment later on. To minimize your risk of losing your cash value in a policy that has become under-funded or insolvent, consider having cash value invested in an appropriate mutual fund or annuity. Now is also a good time to boost coverage in a term plan with more years ahead of you than behind. When you consider the costs of a life insurance policy, it's important to know what your options are.
There are many types of life insurance available. Each type has benefits and drawbacks - but no matter what type of coverage you purchase, you can count on the peace of mind that comes with it. Life insurance is an investment that pays you dividends for as long as you own the policy. You can increase your cash values in an existing policy by purchasing a riders, such as whole life or universal life annuities (ULAs). If money isn't enough to finance your retirement, consider a term plan with ULAs after age 55. You may need additional coverage based on your family needs and where you are in your lifetime. You might have enough insurance as a single parent, for example, but not as a couple. Your needs change as your family grows.
Life insurance can be an invaluable resource that gives you security and peace of mind throughout your lifetime. It's important to do research and comparison shopping before purchasing any type of policy. If you are unsure about which life insurance policies may fit your needs, talk to a knowledgeable agent or advisor. Such professionals can help you find the best coverage for your money, based on your individual situation.
Article Source: http://www.articlesbase.com/insurance-articles/life-insurance-as-an-investment-1246360.html
On the other hand, some young couples might be hesitant to buy life insurance. Just as in any investment, careful planning can help you make wise choices about which form of coverage you should purchase. For example, it's important to research the quality of the underwriters' rating system and firms' financial performance record. The more precautionary you are, the less likely you will experience regret over your investment later on. To minimize your risk of losing your cash value in a policy that has become under-funded or insolvent, consider having cash value invested in an appropriate mutual fund or annuity. Now is also a good time to boost coverage in a term plan with more years ahead of you than behind. When you consider the costs of a life insurance policy, it's important to know what your options are.
There are many types of life insurance available. Each type has benefits and drawbacks - but no matter what type of coverage you purchase, you can count on the peace of mind that comes with it. Life insurance is an investment that pays you dividends for as long as you own the policy. You can increase your cash values in an existing policy by purchasing a riders, such as whole life or universal life annuities (ULAs). If money isn't enough to finance your retirement, consider a term plan with ULAs after age 55. You may need additional coverage based on your family needs and where you are in your lifetime. You might have enough insurance as a single parent, for example, but not as a couple. Your needs change as your family grows.
Life insurance can be an invaluable resource that gives you security and peace of mind throughout your lifetime. It's important to do research and comparison shopping before purchasing any type of policy. If you are unsure about which life insurance policies may fit your needs, talk to a knowledgeable agent or advisor. Such professionals can help you find the best coverage for your money, based on your individual situation.
Article Source: http://www.articlesbase.com/insurance-articles/life-insurance-as-an-investment-1246360.html
On the other hand, some young couples might be hesitant to buy life insurance. Just as in any investment, careful planning can help you make wise choices about which form of coverage you should purchase. For example, it's important to research the quality of the underwriters' rating system and firms' financial performance record. The more precautionary you are, the less likely you will experience regret over your investment later on. To minimize your risk of losing your cash value in a policy that has become under-funded or insolvent, consider having cash value invested in an appropriate mutual fund or annuity. Now is also a good time to boost coverage in a term plan with more years ahead of you than behind.
Conclusion
When you consider the costs of a life insurance policy, it's important to know what your options are. There are many types of life insurance available. Each type has benefits and drawbacks - but no matter what type of coverage you purchase, you can count on the peace of mind that comes with it. Life insurance is an investment that pays you dividends for as long as you own the policy. You can increase your cash values in an existing policy by purchasing a riders, such as whole life or universal life annuities (ULAs). If money isn't enough to finance your retirement, consider a term plan with ULAs after age 55. You may need additional coverage based on your family needs and where you are in your lifetime.