Another advantage of having life insurance is to use it as part of your investment plan. Most financial advisors would encourage you to have balanced investments so that if one kind of investment goesdown (in the stock market, for example), another one will likely go up (such as bonds or real estate).
By using balanced portfolio and investments diversification, you can compensate loss in one area by having some assets in the other areas that is profitable.
Some life insurance policies are actually long-term investments, which you can contribute to and withdraw funds from before you die. The cash-value policies for whole life and universal life insurance are actually can be considered as savings accounts that will accrue cash value over time and also pay for your protection. Although these policies don’t provide highest interest rates available, they are untaxed earnings, so you get a higher return than simply putting your money in a savings account on which you must pay taxes.
This kind of life insurance should be your priority in choosing a life insurance plan.
By using balanced portfolio and investments diversification, you can compensate loss in one area by having some assets in the other areas that is profitable.
Some life insurance policies are actually long-term investments, which you can contribute to and withdraw funds from before you die. The cash-value policies for whole life and universal life insurance are actually can be considered as savings accounts that will accrue cash value over time and also pay for your protection. Although these policies don’t provide highest interest rates available, they are untaxed earnings, so you get a higher return than simply putting your money in a savings account on which you must pay taxes.
This kind of life insurance should be your priority in choosing a life insurance plan.
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