Get A Jump On Retirement Part 4 Making Insurance Work For You

Get A Jump On Retirement Part 4 Making Insurance Work For You



Get a​ Jump on​ Retirement Part 4 Making Insurance Work For You
People see insurance as​ a​ negative thing,​ as​ an expense and​ this could hurt them financially in​ the​ long run. ​
There are certain types of​ insurance that make people correct for feeling this way. ​
Auto,​ home,​ and​ health insurance all give the​ term insurance a​ bad name.
There are types of​ insurance that can be good for a​ person’s financial security as​ well as​ helping to​ reduce estate taxes in​ the​ event of​ a​ person’s death. ​
Some insurance products can be used in​ more than one way. ​
Let me explain. ​
Some people like to​ save money,​ although that group of​ people is​ getting smaller and​ smaller as​ time goes on,​ they still exist. ​
Instead of​ putting your money in​ a​ savings account at ​ a​ bank why not put it​ into a​ whole life insurance policy that gains cash value. ​
There are so many types of​ insurance policies that you​ can get a​ larger return on​ your investment through an insurance policy than you​ can through your bank account. ​
You can also grow the​ money taxfree.
Why is​ this a​ benefit for you? Well,​ you​ get to​ insure your life,​ giving your loved ones financial security in​ the​ event of​ your death and​ you​ get to​ grow cash value savings in​ your policy at ​ the​ same time. ​
You are getting more than one benefit for the​ use of​ this policy,​ unlike and​ auto policy that you​ get no benefit from really. ​
With an auto policy you​ pay a​ premium for use of​ the​ policy. ​
if ​ you​ use the​ policy your premiums go up,​ if ​ you​ never use it​ you​ don’t get any money back.
Whole life policies are also a​ good investment for a​ parent with kids. ​
if ​ you​ buy a​ newborn child a​ whole life policy it​ is​ extremely cheap for a​ lot of​ coverage. ​
By the​ time they reach the​ age of​ 18 there is​ a​ decent amount of​ cash value in​ the​ policy,​ which allows you​ to​ use the​ policy to​ help pay for college. ​
When they graduate the​ policy continues to​ grow and​ by the​ time they get married you​ can use the​ policy to​ help them finance the​ wedding or​ put a​ down payment on​ a​ home. ​
Maybe they are 40 years old and​ decide they want to​ start a​ business,​ the​ insurance policy could help them finance that as​ well. ​
Then they can also use the​ money to​ finance retirement. ​
Clearly this example is​ getting ahead of​ itself but it​ just shows the​ versatility of​ a​ life insurance policy. ​
In most cases a​ loan taken against a​ whole life policy is​ taxfree. ​
Another advantage to​ buying a​ whole life policy for a​ young child is​ they are guaranteed to​ be insurable after they are 18 years old. ​
We don’t like to​ think our kids will get sick but it​ does happen and​ it​ would be terrible if ​ they got sick when they were young and​ this prevented them from being able to​ receive a​ life insurance policy in​ the​ future.
Another example of​ an insurance policy that works for you​ rather than against you​ is​ longterm care insurance. ​
Just as​ the​ case with life insurance,​ the​ younger you​ buy this type of​ insurance the​ cheaper it​ is. ​
The cost of​ caring for the​ elderly is​ rising quickly. ​
if ​ you​ have a​ parent and​ they need to​ go into an assisted living facility or​ a​ nursing home and​ they do not have the​ funds the​ government will pay. ​
But,​ for this to​ happen all of​ their assets must first be exhausted,​ meaning their home is​ sold,​ bank accounts drained,​ retirement savings used,​ and​ anything else. ​
Then the​ government kicks in. ​
This can all be prevented with a​ longterm care policy.
It would be demoralizing for your parent to​ work all their life to​ save for retirement,​ in​ hopes of​ leaving something to​ the​ kids when they pass on. ​
Then they find themselves in​ a​ nursing home,​ which is​ depressing enough,​ and​ in​ top of​ that they lose everything to​ pay for it. ​
This can be prevented with the​ proper planning. ​
While longterm care insurance can be seen as​ an expense it​ can save your estate when you​ are older and​ also give you​ more freedom to​ chose the​ facility you​ end up if ​ you​ need that type of​ care. ​
it​ certainly makes the​ remaining years of​ your life more comfortable if ​ you​ have options.
It is​ important to​ contact a​ financial professional to​ help you​ begin the​ proper planning if ​ you​ haven’t already done so.




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