If you are considering investing in life insurance, you may be wondering if it is really a good idea. After all, there seems to be no end to the number of investment vehicles to choose from in today’s marketplace. This article will discuss 5 reasons why you should invest in life insurance.
1) Life Insurance Benefits the Living
If you have people in your life who rely on you financially, you can protect them by investing in life insurance. While most investments are designed to provide financial security to the account holder, life insurance is designed to benefit your beneficiaries. When you consider the financial security that life insurance can provide your loved ones in the event of your death, it becomes one of the most attractive investments available.
Investing in life insurance, especially when you are young, does not need to create a financial hardship. Many life insurance policies allow you to make a low monthly investment as opposed to a large lump sum contribution. When you consider the potential death benefit of most policies when compared to the premium payment required, life insurance can be a very good deal.
Some life insurance policies offer a wide variety of choices as to how your money is invested within the policy. These policies allow you to have control over where you allocate your funds based on your preference and risk tolerance. If you accumulate a cash balance in your life insurance policy, some policies will allow you to access funds for personal use.
4) You can Create a Legacy
While providing for your immediate family in the event of your death is probably your chief concern, investing in life insurance can enable you to benefit future generations or other causes that are important to you. Because you are able to name specific beneficiaries when you invest in a policy, you can be confident that the proceeds of the policy will be used by the people and causes most important to you.
In some instances, life insurance proceeds that are paid out to a beneficiary in a lump sum are not included in the taxable income of the beneficiary.
When you consider the aforementioned benefits, it is clear that investing in life insurance merits careful consideration. Talk with a trusted insurance advisor like those at Anthony Clark Insurance Ltd. about your circumstances to help determine what type of life insurance may be appropriate for you. You may well decide that the benefits are well worth the investment.