This question has risen several times. Many people are confused whether to classify life insurance as an investment or not. It’s nobody’s fault because when people think about investment, their mind first go to real estate, annuity, stock and bank fixed deposits. Unfortunately, life insurance is ruled out. Is it an investment or not? This article will provide you with answers.
What is an investment? Investment is resources committed into something for the purpose of immediate or future profit, dividend or benefit. According to this definition one can authoritatively say that life insurance is an investment.
Life insurance is a financial instrument that can yield short term dividends and long time benefits. Though life insurance policies differ but in all there’s a benefit. The term life insurance yields only death benefit. That means at the death of the insured, the insurance companies pays the insured’s beneficiary an agreed amount. Invariably, the insured succeeded in investing for the benefit of his family.
Other life insurance yields dividend at intervals for the insured while alive and still pay death benefit to the insured beneficiary at the death of the insured. What else can an investment be if not to yield dividend for the investor. I believe life insurance fulfils that and can be regarded as an investment.
Life insurance has helped so many get off debt, pay off mortgage, prepare for retirement and secure their families. Its benefits cannot be over-emphasized.
One Mr. Grant took up a life insurance policy immediately he started work not willingly but under much persuasion. In order to get the insurance agent off his back he reluctantly decided to take up a policy. Every month he kept up with his premium payment without understanding why he should be giving out such amount to the insurance company. The insurance agent kept encouraging him to continue. Over the years his policy was growing, yet he kept maintaining it.
Unfortunately, he lost his job to the recent economic crisis. He felt the world going down and didn’t know what to do. He confided with the insurance agent who led him through the process of getting his benefits from the insurance company. When the process was over, the insurance company paid him an overwhelming amount in bulk which he used to start his own home business. It was then he understood that his premium was really not a waste.
A life policy has helped so many out of the woods when all odds are against them. It’s a worthy investment for everyone irrespective of your income. Life insurance policies are flexible and can be customized to meet your income and budget. I advise you give a try today.
However, to begin, start by getting and comparing quotes from at least five insurance companies in your area. You can successfully get and compare quotes through an insurance quote comparison website. It’s free, convenient and fast.
I believe this article have succeeded in removing the veil from your eyes.
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