Why Life Insurance Is Always a Good Investment

Life is good, life is precious. It’s hard and unpredictable. Well, there are many famous quotes, sayings, and views about it, but uncertainty is one of the things that make life interesting and hard at the same time. It gets even scarier when one considers the thought that one day they’ll wake up in the afterlife. It may not give you comfort, but it’s a path we’re destined to take as humans, and since you only live once, it’s what you manage to achieve when alive that will determine whether or not you were just a simple statistic.

Enough with the seemingly harsh tone and painful realities in the intro, but while alive, it’s important to put measures in place to ensure that your dependents will not be left suffering while you’re gone. If you guessed right, we’re talking about leaving something behind that will help take care of their basic needs such as food, shelter, and education, just to name a few. Well, life insurance is one of those investments. In essence, life insurance is a form of investment plan where one creates a fund with an insurance company, which would help take care of their family and loved ones in the event of their unfortunate demise. In case the insured person dies, the insurance company pays a certain sum of money to their beneficiaries within a specified period in a lump sum or in installments.

While it may not necessarily replace a person’s value, it can surely go a long way in relieving financial burdens that often come with the loss of life, especially if the deceased was the primary provider in the family. Looking at it from this perspective, life insurance is worth considering if you’re an adult who has children, dependents, or a family looking up to you. This having been said, here are some reasons why life insurance is always a good investment.

It helps protect your family’s future, even when you’re gone

Needless to reiterate, if you’re the sole breadwinner for your family, times can get tough for them in the event of your death. Your demise doesn’t have to be the reason your kids drop out of school, lack basic needs, or be rendered homeless. By getting life insurance, you’re simply protecting your family’s future, and no investment can be better than this. Your family or beneficiaries can use the death benefits to pay off their debts, pay for college, and fund their basic needs.

You have many options to choose from

There are many different types of life insurance policies out there. However, these fall into two broad categories, these being term life and permanent life insurance. With term life, the insurance company basically expects you to pay insurance premiums for a specified time duration, say 10,20, or 30 years. Needless to mention, this can be an ideal option for you if you’ve seen better days, have a high-risk career, or you’re nearing your last days on the planet. On the other hand, permanent life insurance allows you to pay premiums until you die. Upon your unfortunate demise, the available money in your “trust” will go to your beneficiaries.

There are various types of permanent life insurance, the most common ones being:

  • Universal life insurance
  • Whole life insurance
  • Variable life insurance

Each of these policies has its own pros and cons, and the premium rates, benefits, flexibility, and ease of access may vary depending on the insurance company you choose. This makes it important for you to do your homework well while comparing and contrasting several insurance companies and assessing what they have to offer before buying life insurance. To make your work easier, you may need an experienced life insurance broker. According to Ty Stewart, a seasoned life insurance broker from California, getting life insurance through SimpleLifeInsure.com allows you to pick the right policy from the right insurance company without having to worry about sales pressure, hidden facts, or an aggressive underwriting pre approval process. Getting life insurance is a big decision that should be made in a sober, informed, and a calm mind. The fact that you’re at liberty to get the option that best suits you, makes it a great investment.

Permanent life insurance gives a cash value

The major advantage of permanent life insurance is that it can have a cash-value portion, against which you can borrow when you need a quick financial solution. For instance, some insurance policies allow you to tap into the fund so you can purchase a house, pay for your kid’s college, or perhaps fund expensive medical emergencies. When borrowing from your life insurance policy, the policy itself becomes your collateral. In case you develop certain specified medical issues, you could also get some financial relief of off your policy’s death benefit. What’s even better is that the money is tax-free until the end of the policy where it’s withdrawn in a lump sum.

Savings and protection of financial assets

If you have several complex financial assets that need protecting, a policy such as whole life insurance can be a great tool to ensure this. Other types of permanent insurance such as universal life and variable life insurance can also be great options. If you have a large estate or you’ve set a fund for retirement, the death benefit could also be used in paying off estate taxes, which are sometimes a huge pain in the back for most people. In addition, life insurance can be a great tool to use to make savings for the future. Especially if it has a cash value that can provide cash in hand when you need it, your life insurance policy is a great place to drop your spare money. As a matter of fact, it can be a great way to save on taxes too.

Life insurance is an investment that everyone should consider. Whether you get term-life, universal life, whole life, or variable life policy, life insurance is always a good investment. It helps to ensure that your family is protected in case you die, can sort you out when you need financial relief, and provides you with a lifelong piggy bank.

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