Would people nowadays really consider Life Insurance as an Investment for getting the best insurance deals?
Is it a smart move or just a waste of time and money? In this world, where money
makes the world go round or at least fun to live in, will investing for a life
insurance really be necessary or just an added expense to your bank account? In
the words of Suze Orman, “If a child, a spouse, a life partner, or a parent depends
on you and your income, you need life insurance.” You may find yourself asking
what benefits will you be getting once you decide to invest in a life insurance.
What does it really mean when you say Life Insurance?
Life Insurance is a type of insurance that compensates financially for a
deceased family member. To get to the point, the money you will get when you die
is not for you, but for those loved ones you’ve left behind. Life Insurance basically
acts as a safety net to soften the blow of your expected, but mostly unexpected,
death for your family. Think of it as allowing yourself to rest in peace -literally –
knowing that your family will be financially secure should anything suddenly
happen to you. But you will be getting money not only when you’ve died but also
when you’ve lived for too long or suddenly acquired a disability or sickness.
Do you really need Life Insurance? If you’re not a selfish individual and you
love your family as much as yourself, you should consider getting one. Imagine if
you died tomorrow, would your family be able to financially support themselves?
Even for just a while until they can have their own stable jobs. Can they afford to
buy you a coffin or an urn – whichever you prefer? Dying is expensive. If you live
alone, you probably don’t really need it. You can save a small amount for yourself.
But if you are the bread-winner of your family, I’m sure you are now considering.
Here are a few advantages of investing in a life insurance: (1) As I stated
repeatedly above, it provides a flow of cash to your dependents should anything
happen to you, (2) there are certain tax benefits like being income-tax-free, may
be estate-tax free if policy is properly owned, policy loans are income-tax free. (3)
Life insurance policies are generally flexible to the holder’s needs. (4) Life
insurance can be thought of as an easily accessible fund if the need arises, yet as
these are longer-term investments, it can earn a higher return.
But of course, we do not live in a perfect world, with benefits there are also
disadvantages of investing in a Life Insurance. (1) The acquisition process in
getting a life insurance can be annoying and frustrating. Will the company you
will be getting insurance from trustworthy? Is this the right carrier? (2) Life
insurance can be complex especially if it is for estate planning, complex family
status, and business situations. (3) Life insurance is generally purchased for the
benefit of others and not for the directly insured.
In conclusion, the decision to use life insurance as an investment will always
depend on you. Always remember that choosing the right company for your
investment is a decision that you should’ve thought about well so you
get the best insurance deals around. Make sure that
the benefits you will be receiving will at all times, outweigh the detriment you
may encounter along the process.
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