As with most things in life, insurance can seem like a mystery until you’ve investigated the possibilities and learned more about it. It’s true that the life insurance market offers a wide array of products, and can appear confusing at times. But if you’re making either of these common assumptions, you might be avoiding this topic altogether… And that could be a costly mistake.
Life insurance is always an investment. Many forms of life insurance can indeed function somewhat like an investment. Whole life policies that accumulate cash value, for example, can provide retirement planning opportunities or provide loans in the event of a sudden, major expense.
However, other forms of life insurance were created for a more basic purpose. Term life insurance policies are primarily designed to offset financial loss through the death of the policy holder. These policies safeguard against burial expenses and lost income, in the event of an unexpected death.
This misconception is important because many younger and middle-aged people overlook their need for at least a basic term life policy, because life insurance to be a complex investment product. At times life insurance can function that way, but that doesn’t negate the fact that we all need at least a basic policy to protect our loved ones against financial hardship in the event of our passing.
So, try not to conflate the different types, and purposes, of life insurance. There is a policy is that fits your needs.
Life insurance is expensive. Studies have repeatedly show that people often greatly overestimate the cost of a life insurance policy. This leads many to believe that they can’t afford life insurance, especially if their current financial priorities revolve around things like buying a house or having a baby.
But the truth is, if you’re doing either of those things (or approaching many other major life goalposts), you definitely need life insurance to protect your loved ones, your home, and so on! So it’s very important to avoid making assumptions about the cost of life insurance, and simply investigate it with an open mind.
With that idea in mind, we urge you to give us a call. Odds are good that the protection you need is much more affordable than you think.
Insurance and annuity products are not sold through Horter Investment Management, LLC (“Horter”). Horter does not endorse any investment or annuity products nor does it guarantee their performance. Owners of these products are subject to the terms and conditions of the policies and contracts of the issuing companies. All product guarantees depend on the insurance company’s financial strength and claims-paying ability.