Life Insurance New York, NY
Reader’s Question
How can I use life insurance as future investment in New York, NY? Isn’t life insurance just for beneficiaries who are left after I die? Please clarify on this.
Ben
New York, NY
Hello Ben,
It’s true that insurance are provided to your beneficiaries when you die, but it can do more if you buy permanent life insurance. The type of life insurance that only the beneficiaries can benefit is the term life insurance. Term life insurance is purely life coverage. Within a specific term, your life insurance should be enforced so that when you die, your beneficiaries will receive something. But without death on the term, you will gain nothing.
However, there is another type of life insurance known as permanent life insurance which has an investment side. This is definitely available in New York because this is common. It accumulates cash every time you pay your basic premiums. And even if you stop paying premium at certain time, the cash will continue to accumulate. The premiums differ in terms of the cash value it produces plus the death benefit. The permanent life insurance has three variations: whole life insurance, universal life insurance and variable life insurance. Each differs on how the cash accumulates usually because of the interest rate variable.
The permanent whole life insurance can be useful in the future because since it has cash value, you can withdraw it and use it for whatever purposes. Some would even buy whole life insurance to supplant their retirement. Others would buy it as an emergency fund. Some would use it to meet mortgages and other long term financial obligations. In effect, it’s true that life insurance can be a future investment for you but you just have to choose the appropriate type in New York, NY.
Tags: life insurance, life insurance types, permanent life insurance, whole life insurance
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