Is Life Insurance A Good Investment?

it’s life insurance a good investment now I’ve been getting a lot of questions on insurance because it is part of your financial plan

you see sins at a very young age I’ve always had an insurance policy because I always want to make sure that my mom is protected and taken care of if the knock-on water anything happens to me now also at that time I was in debt I was heavily in debt because of all my business failures so I want to make sure if anything happens to me that my mom wouldn’t have to worry about that dead yeah we would have enough money to cover that now insurance could be very very confusing and if you have any other questions you should always consult with an insurance professional but be very very careful because sometimes a lot of insurance people that just sell people you want to consult with a professional it knows what they’re talking about so any questions always consult with a professional but now I want to give you my perspective and educate you on a little bit about the different types of insurance now the two major types of insurance out there one is called permanent life insurance when it’s called term insurance let’s talk about permanent life insurance first now in case you get confused it’s actually very very simple the word permanent that should give you a clue is an insurance policy that covers your entire life permanent right now there are a few advantages to permanent life insurance the first one is tax deferred growth for permanent life insurance you build up the cash value over a period of time then you can borrow against it without paying taxes because essentially it is alone maybe you need that money to to buy something maybe it’s for your kids tuition you could do that benefit number two you don’t lose your coverage after a number of years as long as you keep paying the premiums in fact that’s one of the key kind of advertising benefits that you see from a lot of the permanent life insurance ads and infomercials and commercials that you will see that
sometimes in some cases, it covers up to age a hundred and twenty years old until you get very very old as long as you keep paying the premiums benefit number three they get the accelerated benefit now what does that mean it means that you don’t necessarily have to wait till you pass a way to get the full benefit from the permanent life insurance example let’s say now you’re a little bit older and you have a certain type of illness that you could take some of the money out and take advantage of a few things
where it pays for your medical bills sometimes it’s up to 25% 30% 40% even up to a hundred percent so that you can still enjoy a good quality of life in your final years now the downside of that is then your beneficiary would probably we receive less than the full benefit but you will be able to use some of their money upfronts for yourself so that’s permanent life insurance let’s talk about term insurance so for term insurance you’re buying insurance for a term it’s not permanent it doesn’t cover your entire life and all your monthly payment all your premium goes towards the death if something happens to you all the death benefit goes to your beneficiary it is that simple so for your term insurance it doesn’t have the cash value component and it doesn’t have the investment component so it’s life insurance a good investment so here’s my recommendation if you are ones with basic financial needs and you don’t have a lot of financial assets complicate if I notice your assets to to protect then permanent

life insurance probably is not something that you need term insurance, on the other hand, is something that you want to consider because it protects
your family and the ones that you love you shouldn’t consider that as an
investment it’s just a way for you to protect your family in case knock on wood something happens to you you’re not playing like a huge premium right because that’s not the goal you’re not gonna get rich with your insurance policy it is simply a way for you to protect your family however if you have more financial assets and you have a business you have other things then you may want to consult with a professional then maybe permanent life insurance makes more sense for you that’s my take
so comment below if this makes sense if it helps you to to get more educated in terms of how insurance works and how this fits into your overall picture and don’t think that you are too young to talk to an insurance advisor I talked to my insurance advisor when I was twenty someone years old so don’t wait till then oh I’m 50 I’m 60 because
that’s too late and then your premium would be so expensive and start early start young don’t wait right you won’t even feel it because that money will be deducted from your account and you don’t have to think about it and then you will have that peace of mind

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