Considering some general pros and cons about life insurance, so you can see a clearer picture and decide if it’s the one you need right now.
First of all, let’s see some advantages of life insurance
- This is the main purpose of life insurance, to create a financial protection for your family after your death. Especially, when you have debts and loans to pay off, it’s a great way to support for your loved ones. In any cases, the remaining will somehow suffer from financial problems, no matter you are in debts or not. With life insurance coverage, you can be worry-free since your family is in financial coverage if you are no longer there.
- Cash Value. Yes, we mean it. Although we don’t have return of premium for term life insurance, but you can choose permanent life insurance for cash value option. If you like to have your family under coverage and invest your money as well, then this option is the right one for you. Depending on which policy you go for, your cash value will gradually grow. One thing you should be mindful of, the growth portion of your cash value will taxed if you withdraw the money. However, it also can come together with the benefits to your beneficiaries without tax, in the event you passed away.
- Affordable prices to your best fit. Another advantage of life insurance is that you have a wide range of options over the company, policy, insurance agent, coverage, duration, benefit and more. Because of the flexibility, you can find the one that fit the most to your situation and expectation with affordable price.
How about disadvantages of life insurance?
- Although term life insurance is very affordable, but permanent life insurance can cost a fortune. If you are a very good investor, you can use that amount of money on another financial investment. However, there are always risk and tax on the interest.
- It can be very tricky if you buy term life insurance in your young age and the term ends in your 50s, then it will be hard for you to continue or will be much more expensive to buy.
- Trust issue! Because life insurance is a long term investment, so you don’t really have any ideas what happen in the next 20 or 30 years.
After all, if you decide to go for the insurance, the best way to do is talking to an insurance adviser. They can clarify and address your needs, and help to find a suitable plan for you. It’s all FREE! You don’t have to worry about paying any fee for them at all.