Guess what the rich have in common? You guessed it right! They all invest in life insurance policies with the most common ones being Whole life insurance and Universal life insurance covers. Either way, insuring yourself is a great move.
What do the wealthy gain by investing in life insurance?
Here are 7 benefits of life insurance coverage
Tax-free
The wealthy know that none of us will live forever. Consequently; they invest wisely for the sake of their beneficiaries. The beauty of a life insurance policy is that upon the insured’s demise, their beneficiaries are paid large sums of money known as death benefits. Interestingly enough, death benefits and dividends are literally tax-free.
Guaranteed growth of wealth
Another fascinating thing about a life insurance policy is that it protects your money. You’ll never have to worry about losing a dime from your cash value even when the market is doing poorly. Second; your money will attract an interest rate growth every year depending on how the stock market swings. Nevertheless, your wealth is guaranteed of growing every year. In addition to that, you can use paid-up additions to invest in real estate, among others.
Offers financial protection
Life insurance offers protection against unforeseen financial uncertainties after your death. The last thing you want is to leave your family suffering financially. With a good life insurance policy, your family will have enough to cater for funeral expenses, school fees, utility bills, mortgage, and even pay off debts.
Peace of mind
A life insurance policy comes with abundant peace of mind for the insured. You’ll never have to worry about the continuity of your business, legacy, debts, mortgage or even your children’s school fees if provided you have life insurance. All you have to do is pay your monthly premiums devotedly and your insurer will take care of the rest upon your death.
Flexibility
Unlike other types of insurance covers, life insurance offers great flexibility to the insured in terms of premiums, duration, policy, and even beneficiaries. Your beneficiaries will never be forced to spend the death benefits in any specific area unless you instruct otherwise. Should your income opportunities reduce, you are free to decrease your premiums.
Unrestricted Accessibility to your cash value
Sometimes, our priorities change all the way. Fortunately, you can always access your cash value at any time or age without fear of being penalized or taxed. Unlike other whole life policies such as IRAs and 401(k) s which have multiple restrictions, you can borrow your cash value whenever you want it where need be without obstacles.
Return on Investment
Unlike other investment alternatives, a life insurance policy has a lot to offer in terms of return on investment. Apart from the fact that your money is safe, life insurance covers attract interest, paid additions, dividends, and bonuses making the plan an ideal investment. The money you invest now will bring good returns depending on the duration of your policy.
Verdict
Life insurance policies are not only meant for the wealthy. It is a compulsory risk worth taking thanks to its affordability and numerous benefits. Take charge of your tomorrow today by getting yourself a life insurance policy.
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