Should I Make A Whole Life Insurance Investment
By: Ryan Richardson
If people are depending on you for income like a spouse or children, having a good life insurance plan is crucial. If you were to die prematurely, your family would be able to continue to live in the manner to which they have become accustomed. With no insurance policy in place the loss of income in the event of your premature death may also mean the loss of a place to live for your family or the loss of a college education for your children. A life insurance policy would prevent that if anything should happen to you but with so many different types of life insurance it can be difficult to make a decision.
There are many different types of life insurance policies but they generally speaking, will fall into two categories. A whole life insurance policy or a term life insurance policy. A whole life insurance policy will remain in effect for the rest of your life, as long as you continue to make your monthly premium payments. A term life insurance policy is good for a certain time period and then it expires.
An insurance salesman would tell you that a whole life insurance investment is the best possible option. It's good for the rest of your life so you will always be covered. It builds cash value and can be used as an investment vehicle. The money in your account grows tax-deferred. If you ever needed money you could borrow against your life insurance policy. All of these sound like good reasons to make a whole life insurance investment and for many people it is but for some it may be better to go with a term life insurance policy.
A term life insurance policy can give you great coverage for a lot less money. The monthly premium payments for a term life policy are only a fraction of what it would cost for a whole life policy. It's true that a term life policy does expire at some point but if you think about it that may not be a problem. If you need life insurance to make sure that your family has a place to live and that your kids get through college, a term life insurance policy can certainly make sure that happens. If the term of the insurance policy lasts long enough to see your kids graduate from college and lasts until your house is paid in full then the insurance policy has served its purpose and you don't really need life insurance anymore.
With the money you save in monthly premium payments for a term life policy you can make other investments for cash growth such as bonds or mutual funds etc. You will get a better return on your investment than you would with a whole life insurance policy because whole life policies come with various fees, commissions, and charges that most other investments don't.
Life insurance itself is a very intelligent move to protect your family but you may want to think twice about a whole life insurance investment. For some people, whole life is a great option but it's not the best for everyone, in every situation. Sometimes term is the better choice. You could consult with a financial planner before making your decision but you may be well served by a term life insurance policy and putting the substantial savings off of your premium payments into other investments.
Some people need a good comprehensive life insurance plan, other just need final expense insurance or a high risk life insurance plan. What ever life insurance information you need you can find by reading my articles.
Article Source: http://www.ArticleBiz.com