Probably, you are surrounded by extremely wealthy folks at your workplace who make you feel somewhat apprehensive. These guys have great success stories and often fly in private jets for holidays. Well, you may think that these people have achieved everything they ever dreamt of. Actually, nothing can be far from the truth. What you should know is that these affluent individuals are basically down-to-earth guys who toiled so hard to be where they are today. And apart from getting some insights about wealth creation from such folks, we can as well learn some powerful secrets about life insurance policy from these high net worth individuals. Here are 3 powerful secrets about life insurance we can learn from affluent individuals.
Secret number one: Affluent prefer purchasing life insurance although most of us think they don’t need it.
Though they may seem to have more than enough, the wealthy buy life insurance for many reasons. For instance, the affluent buy life insurance to cover their sendoff expenses when they finally die. As you know, turning illiquid assets into cash often take some time. Also, if one is the sole bread in the family, the affluent consider buying keyman life insurance policy to ensure their loved ones don’t suffer when they finally pass on. The wealthy have learned the secret about life insurance being a powerful tool for providing their significant others’ don’t experience any financial blow upon their death.
Secret number two: Life insurance should be part of your future financial plans.
Most rich people have come to embrace life insurance as an excellent tool for helping them plan efficiently and effectively for the foreseen and unforeseen future events in their life.
Since the rich know they will eventually die one day, they are mindful of the financial burden they would leave behind to their heirs. For instance the future taxes on their estates. Therefore, the rich are purchasing a life insurance policy that will finance the future taxes on the estates they will leave behind to their heirs. The point here is, we should all mind about the future financial burden we would leave to our heirs and how it will affect them when we pass on. So if you are the sole breadwinner in your family, consider buying keyman life insurance policy to get your family covered.
Also, since our needs and goals change over time, it is imperative to keep on evaluating your life insurance cover now and then to meet those changes.
Secret number three: For wealthy folks, life insurance is both a tool and an asset.
Besides it being a powerful tool for wealth creation, life insurance is also a valuable asset. You can leverage on the cash value of your life insurance to finance most of your daily needs. Even better, if you eventually realize you no longer need the life insurance policy, you can easily sell it through life settlement. Amazingly, this doesn’t apply to the wealthy only. Even the poor with life insurance policy are legible to sell their life insurance policy and get the money instantly.
Basically, we can’t be as wealthy as most super-rich individuals we know of. However, we can borrow some of the tactics they used to protect and create the wealth they have to make something out of our lives.