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Is Whole Life Insurance a Good Investment
JOYODU — Is Whole Life Insurance a Good Investment might be one of the most frequently asked questions that you can find about life insurance these days. There are various financial products that you can find these days.
One of them is insurance.
Insurance is the type of financial product that can provide coverage for certain things. There are various choices of insurance that you can find these days which provides coverage for different aspects. For example, there is auto insurance that provides coverage for damages that are caused by accident.
You also can find health insurance that provides coverage for medicines and medical treatments. Other type of insurance that you can find these days is life insurance. Life insurance is considered by many people as one of the best types of insurance that you can find these days.
Some people even use life insurance as their investment. But is that true? Can you use life insurance as investment? Will it be a good investment? This article will discuss life insurance as investment so that you can get some insight about this topic.
Types of Life Insurance
Life insurance is the type of insurance that can provide coverage for your family after you’re passed away. These days there are many insurance companies that offer life insurance. Life insurance is also available in various choices of rate as well. Before you decide to buy life insurance, there are several aspects that you might want to consider.
One of them is which type of life insurance that you should choose. Basically, life insurance can be categorized into two main categories. The first type is called term life insurance. As suggested by its name, this type of life insurance only requires you to pay the premium in specific term.
The other option is called permanent life insurance.
This type of life insurance will remain as long as you pay the insurance premium. Permanent life insurance can be divided into two sub-categories. The first one is called whole life insurance and the other one is called universal life insurance.
The Difference between Whole Life Insurance and Universal Life Insurance
Now you know that there are various choices of life insurance that you can get these days, it’s time for you to decide which life insurance that you want to get. You also can use life insurance as investment as well if you like to.
But before we discuss about Is Whole Life Insurance a Good Investment, you might need to know the difference between universal life insurance and whole life insurance first. Basically, whole life insurance is the type of life insurance that has fixed premium while the universal life insurance is the type of insurance that came with premium that can be adjusted.
If you want to choose whole life insurance, you also might need to learn about the pros and cons of this type of life insurance. The pros of whole life insurance are including fixed premium, guaranteed investment return, and good cash value. The cons of whole life insurance are including mediocre investment return, high fees, expensive premium, and difficult to understand.
Whole Life Insurance as Investment
As you can see on the pros and cons of whole life insurance above, you soon find out that this type of life insurance might not a good idea for investment. Well of course whole life insurance can provide guaranteed investment return but the return is considered mediocre compared to other types of investment.
Moreover, whole life insurance has high fees as well and it also came with expensive premium. This is definitely not good for investment. You can read some reviews about whole life insurance as investment to find out more about Is Whole Life Insurance a Good Investment.
Tags: Whole Life Insurance, Whole Life Insurance as Investment, Whole Life Insurance Investment Return, Whole Life Insurance Premium, Whole Life Insurance Fixed Premium
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