We all know about teenagers and twenty-somethings taking risks. They believe they have luck and bravado on their side and that life is there to be lived. They believe they are bullet-proof. This carefree attitude is sometimes mirrored in their response to the issue of life insurance. ‘Why would I need that?' they ask believing they have eternal youth on their side.
There are at least two things wrong with that attitude and the first is the obvious one. None of us knows what's around the corner and having an accident or contracting a serious disease happens to young people as well as the not so young. So anyone with financial protection through life insurance is well looked after in an unforeseen disaster. Then there's the peace of mind factor knowing you have that protection. But these reasons are not for the financially hard-headed investor.
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You see life insurance can be a clever and rewarding form of investment. Many people lose sight of this practical and extremely helpful benefit. Some look at life insurance and figure that it would be good for their family if they are no longer able to provide for them but what if over the years wise investments have been made and this is not really required anymore?
Policy holders are entitled to borrow part of their premiums. You've been regularly and faithfully paying premiums for years; you have the peace of mind your policy gives but why not use some of the cash you've handed over for years? Suddenly a whole of life insurance policy can become a type of investment with a line of credit you are certainly entitled to.
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There are all sorts of ideas
You could be close to or in your retirement. You'd like to travel and downsize or buy a new car. Your children or grandchildren are starting university or a small business or buying or renovating their first home. The list of things for which you need a modest war chest can go on and on. Your savings, in the form of your life insurance premiums, are sitting there waiting for you to access. In one sense it's your money.
To make things even more appealing, any funds you withdraw from your past premiums attract no tax. You can take the funds and use them for your specific purpose and not have to pay the government a cent. Your policy remains intact. Your family will still receive a benefit should you pass away and you and possibly others can benefit from your latest investment.
And of course, the sooner you take out your whole of life policy, the more funds you'll have to draw on later in life and the cheaper the premiums will be when you start the policy at a young age.This makes the idea of investing in life insurance a pretty good one.
This guest post was contributed by Peter Morgan a finance and insurance writer from Sydney, Australia. The article highlights some features which can be understood in greater depth by Choosi life insurance.