Everybody must agree to this: a life insurance policy is a very good investment and a very good insurance. But now we’re still young and we haven’t thought things true. But still, it’s highly important to know what a life insurance policy is and for which goals it can be used.
A life insurance policy is very handy when you are very responsible in your family and you have people who depend on you like children or a spouse. When something happens to you and you have a life insurance policy, you are sure that they’ll still have financial support when you pass away. You can see this kind of policy as a protective measure. When you’re single and you don’t have any kids, you don’t need the protective measure. I think that everyone should take this kind of insurance. It’s quite handy for later. Off course, you have to pay for it, but you’ll be thankful later that you’ve made such a wise decision now.
But this policy isn’t only an insurance, it’s also an investment. There are 2 types of this investment: permanent and term. The permanent part is that it can be broken into a variable insurance. It combines an insurance with an investment. Term means that it’s approximately the same as any other insurance. You get whatever you pay for. It’s like an insurance for your car. If you have an accident, the damage will be fixed and payed by the insurance company.
Nathalie COUDEVILLE
Source: http://www.forbes.com/2008/12/16/universal-life-insurance-pf-ym-in_avb_1215youngmoney_inl.html
I think there are a lot of reasons why it is interesting to take out a life insurance:
BeantwoordenVerwijderenIn these uncertain days, a life Insurance is likely one of the best types of investments. A life insurance entitles to a guaranteed return that is higher than the profit of a savings account book. When the insured person reaches the age of 65, he is able to maintain his living standard.
When the insured is the breadwinner and he deceases before the age of 65, the payment can help the relatives for financial support or to protect the living standard it is mostly very difficult for the relatives to keep one’s head above water.
The government stimulates people who are saving on individual basic for their pension. It seems that the legal payments of pension will not be enough anymore in the future to live of it and that is the reason why the government pays back a part of the premium.
Sofie De Cooman
I think, these days a life insurance is recommended because the obsolescence increases. Within some years, the government won’t be able anymore to pay all the high pensions. The people will receive a much lower pension. So when they want to keep their living standard, they have to invest. And a life insurance is a great investment. It is also supported by the government, every year they pay a part of the premium back. So far the first advantage.
BeantwoordenVerwijderenThe second one is that when you pass away before the age of 65, your surviving relatives will receive an amount. With this they can bear the loss of income.
De Ridder Steffie