“Life” insurance conjures thoughts of death, let’s face it. No one likes to think about life insurance for that obvious reason but it’s time to view it from the perspective of what it can do for your family now. Life insurance is a wealth-building tool that every family should invest in, today.
Permanent life insurance policies have a component known as “cash value.” Cash value grows slowly over many years and with that growth, policyholders can borrow against it or for a small fee, cash out the policy for money. A cash value that builds for decades can grow to hundreds of thousands of dollars in future tax-free income. The cash can be used for anything you need and with a whole life insurance policy, policyholders are guaranteed a certain percentage return on the cash value. That return is generally favorable when compared to various other products, like CDs. In addition, the cash value growth of a policy is tax-deferred, which means it isn’t taxed as income until you withdraw money or surrender the policy.
When it comes to life insurance, the sooner you buy, the better. For younger people, especially, life insurance policies are much cheaper, meaning you can ultimately get more out of a policy for less. As you age and health deteriorates, life insurance premiums become much more expensive. And speaking of health, life insurance policies can help you manage certain health conditions. For example, some policies provide support for certain medical problems, such as cancer or paralysis.
The more you look at life insurance the more you begin to understand that it’s not just about death. There are a host of benefits now for young families and even children. To be sure, the death benefit attached to life insurance is vital and it simply cannot be ignored. Still, life insurance is important to consider at any age: for what you pay for a monthly Netflix subscription, you can achieve financial freedom now and for your family’s future.