Is Life Insurance A Good Investment?
Is insurance a good option to invest your money? in 2022
Should you invest in life insurance? Is Life Insurance A Good Investment? In today’s post, Dan Lok will be sharing his perspective on whether or not life insurance is a good investment or not. It’s a complex investment and Dan Lok always recommends you consult with a professional to get the best advice for your current and future situation. However, here’s Dan’s perspective on life insurance. Is life insurance a good investment now I’ve been getting a lot of questions. on insurance because it has been part of your financial plan you see since .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 wood anything happens to me now also at the time I was in debt I was heavily in debt because of all my business failures so I want to make sure if anything.
Different types of insurance
Is Life Insurance A Good Investment? of 2022 – 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 a loan maybe you need that money to buy something maybe it’s for your kid’s tuition you could do that benefit number two you don’t lose your coverage after a set 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 120 years old until you get very very old as long as you keep paying the premiums
Benefit number three.
you get the accelerated benefit now what does that mean it means that you don’t necessarily have to wait till you pass away to get 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 receive less than the full benefit but you will be able to use some of that money upfront for yourself so that’s permanent life insurance let’s talk about term insurance so for term insurance, you’re basically 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 uh the death if something happens to you all of that 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.
Is Life Insurance A Good Investment? of 2022
have the investment component so is life insurance a good investment here’s my recommendation if you are ones with basic financial needs and you don’t have a lot of financial assets complicated financial assets to protect then permanent life insurance probably is not something that you need term insurance, on the other hand, is something that you would want to consider because it protects your family and the ones that you love you shouldn’t consider that as an investment it’s really 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’s 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 20 somewhat years old so don’t wait till that oh I’m 50 I’m 60 because that’s too late and then your premium would be so expensive 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.