Life Insurance is an Asset!
Posted by: BeamaLife Editor on 8 Sep, 2009
Most of the time we view life insurance as an expense - especially the term insurance but the greatest strength of life insurance is the ability to pay a specified amount on the death of an insured. For what can be a relatively small amount of money each year, your beneficiaries (your family and loved ones) can receive a large death benefit. Depending on how soon or how far out in the future that death benefit is received, the dollar paid toward life insurance have the potential for you and your family and loved ones to receive a tremendous risk shift to life insurance company.
You might think of life insurance only as a way to provide for a surviving family after the death of a breadwinner. But, wealthy families are increasingly using whole life insurance as an “asset” to create wealth for their beneficiaries. By taking a portion of your assets each year to cover the cost of life insurance premiums, you are able to potentially transfer your wealth and would able to create additional wealth.
Please let me know what you think. Do you own life insurance? What kind?
There is no doubt that everyone would benefit from an insurance policy. The main reason behind taking out a life insurance policy is to replace the income of the insurer after his or her death. A dependent spouse, young children and even siblings who rely on you financially will not suffer after your demise with the correct insurance plan. Life insurance benefits can be used to cover burial and funeral expenses, debt and medical bills and estate taxes. Your beneficiaries can benefit from the inheritance of your life insurance policy benefits. Insurances such as whole life and universal life insurance with a cash value component can even be used as a mode of savings as this element can be withdrawn or borrowed on request. Insurance here acts as an enforced savings plan and is imperative for anyone who recognizes the importance of planning for the future.
Denise at AccuQuote
Disclaimer: I work for AccuQuote and this is my personal opinion.