Yes, Life Insurance Can Be a Smart Investment
Many people often repeat the advice that does not buy life insurance policy, instead buy term life and see the difference. Here we will discuss life insurance is good or bad? Some buy term insurance believing that it is simple and affordable whereas other plans include varied investment components that do not need to understand deeply.
But actually, those who are saying ‘invest indifference’ are really ‘spend the difference’. Actually, there is no guarantee that their term investments will be profitable or not. Many investors don’t understand risk and at the end, they lose their invested funds.
Let’s check life insurance is good or bad as an investment? Most of the term insurance policies expire without paying a claim. As you grow older, premiums for these policies also increase which make people unaffordable when they need indeed. At that time, there is no chance to obtain any life insurance for any serious health problem.
Many of us believe that consulting an agent is the main necessity of life insurance. But actually, they do not understand that the agent has his own interest in commission by selling higher coverage- higher premium policies. They do not always advice in the best interest of consumers by selling a low-cost alternative.
So, whenever go for purchasing life insurance with an annual premium of $10,000 or more, take the services of only insurance consultant who charge a fee on an hourly basis, and taking no interest in any policy you may purchase.
To understand the calculation and advantage of life insurance, let’s take an example of life insurance policy. Suppose 29-year-old man takes cash value policy for 20 years and at the age of 49 he will get insurance coverage of $1.2 million. He can take the cash value benefit if he wants till he pays the amount of the premiums tax-free. When he dies, the death benefit will be paid tax-free to his beneficiaries.
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