Is life insurance a good investment?

There would be many channels where one can choose to invest. Many people agree that life insurance is a good investment, but how true is this? How do people truly benefit from investing in life insurance?

What is considered to be a “good” investment?

Before we can answer if life insurance is a good investment, we must first see what people widely consider to be a good way to spend their money on.

To be able to live a good life, investing is a need. It would be essential to have another source of income aside from their salary from their nine to five. People would need this investment to help them get out of financial trouble in the future or fund their retirement when the time comes. Investing in something allows you to grow your wealth over time. Your investment should help you meet your financial goals.

Life insurance is a wise investment

Now that we know what a good investment can do for us, we can say that life insurance is an extremely wise investment. It would hit all these birds with one stone. We will explain why.

It is affordable. 

You do not have to worry that you do not have enough money to invest in life insurance, because you will be paying it in affordable premium payments over the course of years. You will not be paying anything more than what you can afford, because you and the insurance adviser will agree on what price would work best for you.

It is low-risk. 

Life insurance will invest part of the premiums you pay in low-risk investments. Insurance companies would have stockbrokers employed to help grow the amount you invested with them. The best thing about this is, you don’t even need to know about stocks yourself. The investors will be the ones to trade for you. This is also one of the ways these companies would make money.

It can help build your retirement. 

If you can make a good investment, you will not have to worry about money when you will retire. On top of receiving any pension from your company and pension companies like SSS or GSIS, you can rely on your life insurance policy. 

It can be a safety net in case you get into a financial jam.

You may never know what will happen in the future. Emergencies always seem to happen when you least expect them. If you do not have any money, you will not be ready to face these emergencies.

Your life insurance policy may include a cash amount that you can borrow against. Some companies would require you to pay a certain amount to do this, but others don’t. This cash amount can be your safety net in case you suddenly find yourself needing a little extra money.

In short, is life insurance a good investment?

Yes, it is. Many people do not realize that life insurance is more than just an amount of money that beneficiaries receive when a policyholder passes away. Life insurance can be a source of funds that can replace any lost income and it can provide financial assistance to you and your family when you need it most.

Having life insurance is not only needed because you are going to die someday. That is not all that life insurance is about. The main focus of life insurance is to make sure that people can still keep on living in case someone in the family dies. 

That in itself makes it a very wise investment that is worthy of the money you will put into it.