Life Insurance - The ‘Cool’ Investment
We all know about teenagers and twenty-somethings taking risks. They believe they have luck and bravado on their side and that life is there to be lived. They believe they are bullet-proof. This carefree attitude is sometimes mirrored in their response to the issue of life insurance. ‘Why would I need that?’ they ask believing they have eternal youth on their side.
There are at least two things wrong with that attitude and the first is the obvious one. None of us knows what’s around the corner and having an accident or contracting a serious disease happens to young people as well as the not so young. So anyone with financial protection through life insurance is well looked after in an unforeseen disaster. Then there’s the peace of mind factor knowing you have that protection. But these reasons are not for the financially hard-headed investor.
It’s the economy, folks
You see life insurance can be a clever and rewarding form of investment. Many people lose sight of this practical and extremely helpful benefit. Some look at life insurance and figure that it would be good for their family if they are no longer able to provide for them but what if over the years wise investments have been made and this is not really required anymore?
Policy holders are entitled to borrow part of their premiums. You’ve been regularly and faithfully paying premiums for years; you have the peace of mind your policy gives but why not use some of the cash you’ve handed over for years? Suddenly a whole of life insurance policy can become a type of investment with a line of credit you are certainly entitled to.
There are all sorts of ideas
You could be close to or in your retirement. You’d like to travel and downsize or buy a new car. Your children or grandchildren are starting university or a small business or buying or renovating their first home. The list of things for which you need a modest war chest can go on and on. Your savings, in the form of your life insurance premiums, are sitting there waiting for you to access. In one sense it’s your money.
To make things even more appealing, any funds you withdraw from your past premiums attract no tax. You can take the funds and use them for your specific purpose and not have to pay the government a cent. Your policy remains intact. Your family will still receive a benefit should you pass away and you and possibly others can benefit from your latest investment.
And of course, the sooner you take out your whole of life policy, the more funds you’ll have to draw on later in life and the cheaper the premiums will be when you start the policy at a young age.This makes the idea of investing in life insurance a pretty good one.
Insurance: A Guide
"Remember kids, I have life insurance" - Adam Savage
This is a guest article from Tatyana Levin
These days one must be financially savvy. Money is not easy to come by and should be managed carefully. With the availability of tools that make it easy to keep track of current events, the stock market, and even your own money, it would be almost a crime to not utilize these tools to make the best and most informed financial decisions. Unfortunately, the more there is, the more there is to keep track of. This applies both to tracking tools and money (the small curse within the comfort of having money to keep track of).
The savvier ones of us dabble in investments, and the savviest make their living that way. The key is that they know what to invest in. Not magically, of course; investors do a significant amount of research to learn how to optimize their portfolios, but they have the understanding.
A grossly overlooked investment is insurance. This may be because is not typically referred to as an investment with the exception of whole life insurance that has a specific investment component within it. Webster’s defines the word “invest” as a commitment of money for a return and “insurance” as a guarantee. This makes insurance the safest type of investment, because your returns are guaranteed. But returns are not always financial in the case of insurance. They can be, if there is an unforeseen accident, but the most certain return is the feeling of security.
Now there are many different types of insurance, and what you need depends on your current situation. Obviously you only need auto insurance, found using auto insurance leads if you have a car, and you only need renter’s insurance if you rent and have possessions that you would need insured. Insurance is for those who have something to lose. With an attachment to something, either emotional of physical (or dependence, not like physically being glued to your car), comes the fear that it will be damaged or ruined in some way. For example, if your house caught on fire, you would be devastated. What would add insult to injury is not having a way to recover from this horrible disaster.
These types of examples are not unique to this article. That is the way that insurance is sold. As they say that clichés are clichés for a reason, insurance is promoted this way for a reason. The foundation of the concept of insurance is uncertainty, and it is the same uncertainty that is conjured up when investing.
The main difference between insurance and investment is that not having insurance creates a feeling of uncertainty while investments by nature are uncertain. Therefore, investing in insurance creates security and is the only secure investment that exists (and is legal). Getting insurance should be one of the easier financial tasks if you apply all the resources available with technological advances like smart phones.
About the Author: This article was written by Tatyana Levin, a copywriter for InsuranceFiles.com
We all know about teenagers and twenty-somethings taking risks. They believe they have luck and bravado on their side and that life is there to be lived. They believe they are bullet-proof. This carefree attitude is sometimes mirrored in their response to the issue of life insurance. ‘Why would I need that?’ they ask believing they have eternal youth on their side.
There are at least two things wrong with that attitude and the first is the obvious one. None of us knows what’s around the corner and having an accident or contracting a serious disease happens to young people as well as the not so young. So anyone with financial protection through life insurance is well looked after in an unforeseen disaster. Then there’s the peace of mind factor knowing you have that protection. But these reasons are not for the financially hard-headed investor.
It’s the economy, folks
You see life insurance can be a clever and rewarding form of investment. Many people lose sight of this practical and extremely helpful benefit. Some look at life insurance and figure that it would be good for their family if they are no longer able to provide for them but what if over the years wise investments have been made and this is not really required anymore?
Policy holders are entitled to borrow part of their premiums. You’ve been regularly and faithfully paying premiums for years; you have the peace of mind your policy gives but why not use some of the cash you’ve handed over for years? Suddenly a whole of life insurance policy can become a type of investment with a line of credit you are certainly entitled to.
There are all sorts of ideas
You could be close to or in your retirement. You’d like to travel and downsize or buy a new car. Your children or grandchildren are starting university or a small business or buying or renovating their first home. The list of things for which you need a modest war chest can go on and on. Your savings, in the form of your life insurance premiums, are sitting there waiting for you to access. In one sense it’s your money.
To make things even more appealing, any funds you withdraw from your past premiums attract no tax. You can take the funds and use them for your specific purpose and not have to pay the government a cent. Your policy remains intact. Your family will still receive a benefit should you pass away and you and possibly others can benefit from your latest investment.
And of course, the sooner you take out your whole of life policy, the more funds you’ll have to draw on later in life and the cheaper the premiums will be when you start the policy at a young age.This makes the idea of investing in life insurance a pretty good one.
Insurance: A Guide
"Remember kids, I have life insurance" - Adam Savage
This is a guest article from Tatyana Levin
These days one must be financially savvy. Money is not easy to come by and should be managed carefully. With the availability of tools that make it easy to keep track of current events, the stock market, and even your own money, it would be almost a crime to not utilize these tools to make the best and most informed financial decisions. Unfortunately, the more there is, the more there is to keep track of. This applies both to tracking tools and money (the small curse within the comfort of having money to keep track of).
The savvier ones of us dabble in investments, and the savviest make their living that way. The key is that they know what to invest in. Not magically, of course; investors do a significant amount of research to learn how to optimize their portfolios, but they have the understanding.
A grossly overlooked investment is insurance. This may be because is not typically referred to as an investment with the exception of whole life insurance that has a specific investment component within it. Webster’s defines the word “invest” as a commitment of money for a return and “insurance” as a guarantee. This makes insurance the safest type of investment, because your returns are guaranteed. But returns are not always financial in the case of insurance. They can be, if there is an unforeseen accident, but the most certain return is the feeling of security.
Now there are many different types of insurance, and what you need depends on your current situation. Obviously you only need auto insurance, found using auto insurance leads if you have a car, and you only need renter’s insurance if you rent and have possessions that you would need insured. Insurance is for those who have something to lose. With an attachment to something, either emotional of physical (or dependence, not like physically being glued to your car), comes the fear that it will be damaged or ruined in some way. For example, if your house caught on fire, you would be devastated. What would add insult to injury is not having a way to recover from this horrible disaster.
These types of examples are not unique to this article. That is the way that insurance is sold. As they say that clichés are clichés for a reason, insurance is promoted this way for a reason. The foundation of the concept of insurance is uncertainty, and it is the same uncertainty that is conjured up when investing.
The main difference between insurance and investment is that not having insurance creates a feeling of uncertainty while investments by nature are uncertain. Therefore, investing in insurance creates security and is the only secure investment that exists (and is legal). Getting insurance should be one of the easier financial tasks if you apply all the resources available with technological advances like smart phones.
About the Author: This article was written by Tatyana Levin, a copywriter for InsuranceFiles.com
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