About Cash Value Life Insurance New York NY
Reader’s Question:
How do Cash Value Life Insurance Plans work? And should I listen to my life insurance agent/ friend here in New York and get one?
Brent
New York, NY
Cash Value Life Insurance Policies are a kind of life insurance that is meant to be kept for the duration of the insured individual’s lifetime (meaning very long-term). This kind of insurance accumulates enough money in the beginning years of the coverage to make sure that your can maintain an affordable level of life insurance premiums in the later years or when you are much older, where life insurance costs are usually either very expensive or prohibitively costly.
Before you sign-up for any form of life insurance coverage there in New York, it is first very important to understand why you need to get insurance in the first place. Knowing your personal needs and the future financial needs of those who rely on your income is the key to gaining the right kind of life insurance policy. And of course, who would want to be in a situation where they have been paying a policy for years, only to find out, eventually, that it was the wrong kind?
Whole Life, Universal Life and Variable Life are good examples of Cash-Value policies. Unlike an initially affordable term life insurance, these policies costs comparatively more in the first few years of coverage however, keep in mind that part of your premium actually goes into a form of ’savings account’. The insurance company may choose to pool policyholders money into investments that allows them to grow your money over time (without being taxed!). Kept long-enough, your cash-value policy may even be able to pay for itself eventually.
Tags: Life insurance advise, cheap life insurance, Life Insurance, Cash Value Life Insurance, affordable life insurance
Long-Term Life Insurance For Children New York NY
Reader’s Question:
I’m thinking of getting either a trust fund or a life insurance for my 5-year old daughter here in New York. Which one would be better?
Seth
Brookhaven, NY
This is a very interesting question. What you want is to invest money for your daughter’s financial future. What you need to know now is that no matter how much any life insurance agent there in New York tells you otherwise, a life insurance policy is just not the best type of long-term investment. If you are thinking about stashing away money for college needs or as a cash gift for her in the future, there are far better investment options available out there such as a 529 savings plan.
Although it would probably make more sense to get a whole life insurance policy for your daughter right now, while premiums are extremely low, so that your daughter is guaranteed life insurance coverage in case she develops any unhealthy habits or contracts any disease or even medical conditions that might make it prohibitively expensive, to next-to-impossible to get life insurance coverage for her in the future, or maybe you just want to make sure that burial costs are covered in case your daughter dies (sounds morbid, doesn’t it?). Other than that, unless the child is the main income provider in the family, there really isn’t any point on getting life insurance coverage for children.
A trust funds sounds better, or a college educational plan. You should think more about getting life insurance for you since your daughter would probably need that more in case you suddenly pass away.
Tags: life insurance advise, life insurance information, whole life insurance, term life insurance
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