Reasons to Get Life Insurance California CA
Reader’s Question:
My friends are telling me to get a life insurance policy now, but I believe more in investing in the stock market. Can you give reasons why I should get life insurance?
Charlie
Santa Ana, CA
Wow, Charlie, you really are making sure that every penny of your money is not going to waste. I am not discouraging you to buy stocks as there are a lot of guys who made fortunes in investing in equities. However, I want you also to see the value of a life insurance.
There is really no one stopping you from investing in either as both are investment vehicles. Investing in life insurance is investing in the future and your family’s future in case something happens to you. This doesn’t mean that we have to wait for your death to benefit from your life insurance. It can, moreover, help you during those times when you need money very badly.
Consider, for instance, your kid going to college. There are life insurance policies that will give a lump sum after 15 years. So, by the time your kid is ready for college, you are assured that you will have funds to draw from. I would say college education is an investment you would want to give your kid. Depending on the life insurance policy you get, you can have provisions added such that you will get a lump sum if you get cancer in your later years or if you lost your hearing or eyesight out of old age.
If what you want is an investment in the sense that you’ll be able to watch your money grow, there are life insurance products that give guaranteed returns. For some, guaranteed returns don’t sound appetizing enough investment-wise, but remember that you are getting coverage while you watch your money grow.
Charlie, you can also get a loan from your policy when you have enough accumulated cash value already. This feature is very useful when you need money for emergency purposes. With stocks, yes, you can pull them out right away, too, but you cannot predict how much it would be during then.
Charlie of California, I hope I have given you enough reason to trust life insurance policies. Have a nice day.
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