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Finance > Insurance > Life InsuranceGet A Jump On Retirement- Part 4- Making Insurance Work For You

Posted by nick_niesen in Finance on November 8th Throwback Oakland Athletics Jerseys , 2010

People see insurance as a negative thing, as an expense and this could hurt them financially in the long run. There are certain types of insurance that make people correct for feeling this way. Auto, home, and health insurance all give the term 聯insurance聰 a bad name.

There are types of insurance that can be good for a person聮s financial security as well as helping to reduce estate taxes in the event of a person聮s death. Some insurance products can be used in more than one way. Let me explain. Some people like to save money Custom Oakland Athletics Jerseys , although that group of people is getting smaller and smaller as time goes on, they still exist. Instead of putting your money in a savings account at a bank why not put it into a whole life insurance policy that gains cash value. There are so many types of insurance policies that you can get a larger return on your investment through an insurance policy than you can through your bank account. You can also grow the money tax-free.

Why is this a benefit for you? Well, you get to insure your life, giving your loved ones financial security in the event of your death and you get to grow cash value (savings) in your policy at the same time. You are getting more than one benefit for the use of this policy Authentic Oakland Athletics Jerseys , unlike and auto policy that you get no benefit from really. With an auto policy you pay a premium for use of the policy. If you use the policy your premiums go up, if you never use it you don聮t get any money back.

Whole life policies are also a good investment for a parent with kids. If you buy a new-born child a whole life policy it is extremely cheap for a lot of coverage. By the time they reach the age of 18 there is a decent amount of cash value in the policy, which allows you to use the policy to help pay for college. When they graduate the policy continues to grow and by the time they get married you can use the policy to help them finance the wedding or put a down payment on a home. Maybe they are 40 years old and decide they want to start a business, the insurance policy could help them finance that as well. Then they can also use the money to finance retirement. Clearly this example is getting ahead of itself but it just shows the versatility of a life insurance policy. In most cases a loan taken against a whole life policy is tax-free. Another advantage to buying a whole life policy for a young child is they are guaranteed to be insurable after they are 18 years old. We don聮t like to think our kids will get sick but it does happen and it would be terrible if they got sick when they were young and this prevented them from being able to receive a life insurance policy in the future.

Another example of an insurance policy that works for you rather than against you is long-term care insurance. Just as the case with life insurance Oakland Athletics Jerseys For Sale , the younger you buy this type of insurance the cheaper it is. The cost of caring for the elderly is rising quickly. If you have a parent and they need to go into an assisted living facility or a nursing home and they do not have the funds the government will pay. But, for this to happen all of their assets must first be exhausted, meaning their home is sold, bank accounts drained Cheap Oakland Athletics Jerseys , retirement savings used, and anything else. Then. Wholesale Jerseys   Wholesale NFL Jerseys   Wholesale NCAA Jerseys   Wholesale College Jerseys China   Wholesale NBA Jerseys China   Wholesale NBA Jerseys China   Wholesale MLB Jerseys Cheap   Cheap New NBA Jerseys   Cheap College Basketball Jerseys   Wholesale Jerseys