Look at life insurance as an investment. Rather than as a cost of daily life, think about how it can work for you as a long-term investment.
A variety of forms of life insurance exist. Some may offer financial benefit during your lifetime. However, in all cases, you need to think of it as a financial tool to support your family and your future.
It's Low Risk
Many people invest their money based on risks. Stocks, for example, are high risk. That means they offer a potentially higher reward, but may also lead to no earned benefit. Bonds are usually less risky, as is an investment in Gold.
Now consider life insurance. You pay a small amount towards it on a regular basis. The value remains the same throughout your life or the term. It might even accumulate cash value. If you die while the policy is in place, the full value is present. Your family has financial protection. This is a very low-risk investment, then.
It Offers Significant Financial Support
You select the value of your life insurance policy. Choose what works to fit your needs. If you choose wisely, it will cover many of the risks your family faces. It could provide enough to cover a home's mortgage. It could replace your income if you are a breadwinner in the family. It can help cover medical bills. It can also help cover many of the other goals you have. If the worst were to happen, your family would enjoy this assistance, usually immediately.
There's No Tax Risk
Another way to look at any investment is by focusing on the tax implications. If you buy real estate, improve its value, and sell it, you pay capital gains taxes. If you buy stock and see its value grow, there are taxes to pay.
However, with life insurance, that is often not the case. If the policy comes due, your beneficiary receives exactly what the policy is for at the time you write it. It does not go through probate court. It does not go to pay off bills (though many people use it to settle debt). There are no taxes on it. In that way, these funds are highly lucrative in a family's time of need.
When you consider life insurance as an investment, the options are clear. Having it can give your family the support they need if they should need it. It also gives you the ability to know you are investing your money well. Talk to your All About Insurance agent at any of our offices - Mid-Cities 817-589-0006, Fort Worth 817-626-3339 or Mansfield/Arlington Ofc at 817-453-5524, and find out how getting life insurance can benefit your security.
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