Everyone has a retirement plan for certain. Although people don’t want to think about death, but this is an obvious and everyone has to pass away one day. What will happen if you can’t live up to retirement? This is why you should think in advance and make sure the family is not thrown into any trouble especially financial problems don’t come over them. Also, burial or funeral cost is another burden and you need a pre-arrangement as well. Today a regular funeral can cost you $8,000 on average in the USA. This is definitely a good amount to pay on the sudden death event.
Term life insurance is a great solution and if you can plan it smartly, you definitely don’t have to worry much about the family after death. Term policy is least expensive amid all life insurance policies available in the market today. Let’s do some math and try to prove why term policy is a much better option than permanent policy with some numbers. To avail a 20 year term policy worth $1 million death benefits will cost you around $1k per year for premium for someone who doesn’t smoke and in decent health living in NY. The person doesn’t necessarily to be in the best health condition though. For the same death benefits, the same person will pay around $14k for whole life insurance. So, the difference is around $13k per year. There is no doubt that whole life insurance accumulates cash value and term insurance doesn’t, but there are taxes and fees involved with permanent policy and those will be deducted from death benefits.
Now when you purchase a term policy, you’re saving a lot – around $13k per year. You can invest that money for other businesses as well. The small and medium entrepreneur business also lets you leave a legacy for the next generation. Putting all eggs in the same basket is definitely not the best idea. By taking smart steps, you certainly can make the best use of money that is left by purchasing a term policy instead of whole one. There are a lot of investment programs out there where you can invest safely and eventually more benefits than whole life insurance. The best retirement plan involves ensuring financial stability for family members. Thus you must do the plan carefully which lasts long and becomes successful in long run.
Term life insurance is a great solution and if you can plan it smartly, you definitely don’t have to worry much about the family after death. Term policy is least expensive amid all life insurance policies available in the market today. Let’s do some math and try to prove why term policy is a much better option than permanent policy with some numbers. To avail a 20 year term policy worth $1 million death benefits will cost you around $1k per year for premium for someone who doesn’t smoke and in decent health living in NY. The person doesn’t necessarily to be in the best health condition though. For the same death benefits, the same person will pay around $14k for whole life insurance. So, the difference is around $13k per year. There is no doubt that whole life insurance accumulates cash value and term insurance doesn’t, but there are taxes and fees involved with permanent policy and those will be deducted from death benefits.
Now when you purchase a term policy, you’re saving a lot – around $13k per year. You can invest that money for other businesses as well. The small and medium entrepreneur business also lets you leave a legacy for the next generation. Putting all eggs in the same basket is definitely not the best idea. By taking smart steps, you certainly can make the best use of money that is left by purchasing a term policy instead of whole one. There are a lot of investment programs out there where you can invest safely and eventually more benefits than whole life insurance. The best retirement plan involves ensuring financial stability for family members. Thus you must do the plan carefully which lasts long and becomes successful in long run.