Rich people who have a lot of extra cash aren’t the only ones who should get life insurance. A life insurance policy is a great investment that you can use to help you in your retirement. If you purchase early and before you’re facing health and other challenges, life insurance is often a good choice.
Life insurance is a term that most people are familiar with, but they may not be familiar with much more than that. For example, the term of a policy is when you pay premiums for a death benefit which is paid out over a finite amount of time. There are also whole and universal life insurance policies which are referred to as permanent or cash value policies.
Universal policies are those which can be cheaper than whole life and can be guaranteed for as many years as needed. With whole life insurance there is a cash savings component with consistent premium payments. Part of the premiums go toward the cost of the insurance while the remainder contributes to the cash value. In addition, the cash value earns interest over the life of the policy.
Whole life policies are bundled life insurance policies with no transparency of insurance costs, administrative costs, or interest rate assumptions. For this reason, they are not considered traditional investments.
You may also need to consider the actual costs of insurance, which can and most likely will rise over time, which means the cash value of a policy will also change over time.
And then there is also your own financial situation to consider. There are some conditions in which a good life insurance policy will help stabilize your finances, while providing a secure resource for the future.
Each person has a different situation and there is no such thing as a life insurance policy that makes sense to everyone, and every situation. To learn if this is something that you would be interested in finding out more about, speak to an agent and explore all the options.