Is Life Insurance a Good Investment?

A life insurance investment is either a good or bad choice depending on your personal characteristics.

The Deciding Factors

If you support someone else, or more than one person, than life insurance is a good investment for you. This includes if you are the parent of small children, have a spouse that does not work or makes a very small income, or take care of a disabled person and his/her needs.

If you have debts that need to be settled, mortgages that need to be paid, or income or estate taxes that need to be covered, investing in life insurance will save your family from financial downfall. When you die, the moneys that you owe do not die with you. It will be up to your family to pay off your deficits.

If your family is used to living at a very high standard of life in part because of your income, a life insurance policy will allow them to still receive money in your absence. If you want to contribute to your family’s wealth even after your death, then invest in a life insurance policy.

If you do not have any concrete assets to leave behind, investing in a life insurance policy may provide your family with a means to make money to pay for funeral costs. Funerals can be very expensive and, without money from you, the burden will fall on your family.

blog comments powered by Disqus