Putting money aside for retirement and building a nest egg is crucial for the financial security of you and your family. After all, if you suddenly were unable to support your family, what would they do?
1. It’s Part of a Sound Financial Plan
If anyone financially relies on you, then life insurance should be a requirement. In fact, almost two-thirds of people say they’ve bought life insurance to replace lost wages or income in the event of their death. Specifically, with a life insurance policy, your family will be able to cover essentials like food, clothing, housing, debts, or end-of-life expenses. And, it can also be used to help save for your child’s education.2. Insurance Is a Product, Not an Investment
Some brokers will try to convince you to purchase whole life insurance by stressing that it’s a valuable investment. How so? Because its cash value grows over time. In reality, if you’re actually concerned about growing your wealth, you should invest in the market or other investments like real estate.“Insurance is a product, not an investment. If no one is worse off financially should you pass away unexpectedly, you probably don’t need life insurance,” said Patrick McDowell, a certified financial planner with Arbor Wealth Management. According to him, the best-case scenario would be to pay monthly premiums for the length of the policy and not get anything back because you didn’t die.
