Life insurance must not be viewed as a financial investment only. More than this, it is a great opportunity for the insured person to have future protection against untoward incidents. If you don’t have anything that protects your property, business or family, then your money’s value is not worth it.
Considering life insurance as a good investment only is not enough. In fact, it can even be harmful to the financial stability of the people. Insurance policies are very illiquid as they underperform bonds and stocks and are slow-moving in generating returns and growth. Therefore, anyone thinking this route as an investment option must have a long-term perspective about the process. Normally, it takes more than fifteen years before experiencing returns from this insurance.
Also, customers must know that life insurance agents are paid depending on the amount of money paid by the client. Most agents, particularly the ones under big life insurance providers, are inclined to push policies that cost clients a fortune—just to get a big commission. Often, they support their suggestions by giving advice to the customer to take the policy as a form of investment.
Few customers understand life insurance and the kinds of policy offered to them. But various policies will show whether people getting insured are being pressured to get unnecessary expensive policies or not. Here are some details you should know before buying your life insurance:
- Doing business with a trusted agent. All agents are not the same. Many are after the money only although some are not. Look for an agent who is trusted enough to teach you every option suitable for your needs. If you are being pressured to get a particular type, consider consulting another professional agent.
- Term life insurance is good enough. This type of insurance is designed to get you covered within a specific period of time such as 10, 15, 20 or even 30 years. For some people and in most circumstances, term life insurance is just the sufficient coverage.
- Choice to get a permanent policy. But, it’s recommended to get a permanent or cash value policy if the members of the family need liquidity to settle estate taxes in case the insured person passes away. Permanent policy is also considered if one of the children has special needs of financial assistance.
- Different types of permanent policy. Today, permanent life insurance is available through universal life, whole life, variable universal life and indexed universal. All of these vary in features and in claims such as offering death benefit flexibility and yearly premiums against guaranteed premiums/cash value. Therefore, it’s always best to consult a competent life insurance agent if you’re choosing your insurance policy.
- Difference between investing and growing your money. You can place your hard-earned money for life insurance and allow it to earn a little through a specific policy. However, after waiting 15 years or more, still you have not become wealthy.
The way other people see it, life insurance is not termed as “investment.” Instead, if you want your money to multiply, bring it to a money manager and not to an agent of life insurance. However, if you’re looking for protection in the near future, making deals with the best agent who shows you the right life insurance policy is the way to do it.
To learn more about Life Insurance in Florida, please contact us at DMG Insurance and Financial Services, Inc. (http://www.dmginsurance.com) at 543 N State Road 7, STE 106, Royal Palm Beach EL, 33411, phone 561 422 7071, Fax 561 422 7072.