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Do you need life insurance? Is life insurance an expense?

Updated: Apr 1, 2023

Before we understand why we need life insurance, we must know, is life insurance is an expense?

Is life insurance an expense?

Life insurance is often thought of as something you buy to protect loved ones in the event of your death. Viewed from this angle, the premiums you pay seem more like an expense than an investment. On the other hand, an insurance policy that will take care of your family members and your business partners could let you spend more of your money guilt-free as you age and ease into retirement. From this perspective, life insurance is a good investment.

The other reason why many people think life insurance is an expense because they have misunderstood Term Insurance is life insurance where you pay the premium over a number of years and get nothing in return if the insured is fortunate to live longer than the term period.

In fact, besides the Term Insurance, the other type of insurance available and popular is Permanent Insurance. Permanent insurance has an saving component in it.

Why you need life insurance?

If we closely analyze why do we work hard and try to earn more? Probably, the simple answer in most cases is to provide a better life to ourselves and our loved ones or our family. If you are looking for financial protection for the people who depend on you, that will last as long as you live? Permanent life insurance such as Whole Life or Universal Life is the answer.

With Whole Life or Universal Life insurance, you not only protect your family financially but also you build wealth. You are conservative when it comes to money and investment, Whole Life is for you, while Universal Life is for them who love market. I would like to emphasize here, even though Universal Life linked with market, your principal is guaranteed.

Why is life insurance important?

Life insurance can help protect your family financially. Your family gets paid the insured sum when you pass away. It is Tax-free and can be of much financial assistance to your family, such as -

  • Pay off your mortgage.

  • Pay off other outstanding debts.

  • Replace your income.

  • Pay for your children’s education.

  • Provide cash to pay probate fees and taxes without needing to liquidate assets.

Permanent life insurance

If you’re looking for lifelong protection, this type of insurance is suitable for you. Why? because permanent life insurance stays in effect throughout your life, no matter your age or health. You have to be sure to pay the monthly or annual premiums.

Here’s what you can expect from permanent life insurance:

  • Your life insurance coverage is guaranteed for as long as you live and keep up the required payments.

  • You’ll get the security of having a premium that stays the same, regardless of your age or changing health.

  • There is an savings component (Cash value) that grows with a compound interest rate over time, which can be your retirement solution as well or can help your legacy after you pass away.

**For more information, schedule a obligation free information session with us

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