Are You Investing When You Buy Life Insurance

You can consider buying life insurance as an investment in its own right because it provides for the future. Although in the real sense, it is your money that earns for the benefit of the insurance company and it shares part of the interest with you.

It would be cheaper if you buy life insurance when you are young, but it does not guarantee that it is easy to qualify for. Insurance companies definitely want higher premiums paid by older people. It is only the consumer who wants to pay lower rates. It is very unlikely to find an insurance company that would refuse selling an insurance coverage to someone who is older (under their risk category) but willing to pay.

Most of those who buy insurance consider it as an investment, but when considering other investment areas, insurance would not make sense. Some types of insurance are said to be a way to save or invest money for retirement and that is termed as the cash-value insurance policies. The insurance company invests your money for their benefit therefore you can receive a part of the interest because they use your money. 

Who Needs To Buy Life Insurance?

People with enough assets to cover all debts and expenses associated to death may consider insurance unnecessary. They have all the means to pay for funeral, lawyer’s fee and others. They have all the provisions in terms of cash, trusts and many forms of investment for dependents after death. They don’t need to get a life insurance to provide for the future of the dependents.

BUT, if you are a breadwinner with dependents and you have debts more than your assets, then you need to buy life insurance. That is to make sure that in case of your death your beneficiary/s would have something to start with their life without you to take care of them. With that being said, you can invest in insurance anytime when you need it and not for fear of not qualifying later when you are older. Pick up your phone or search the internet now!