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Is a 30 Year Term Life Insurance Policy a Good Investment?

The answer to the question of whether a 30 year term life insurance policy is a good investment is: Yes. And no. Before you make any purchase, research your options using an unbiased and free service.

Term life insurance is a great investment if you are looking for financial security for your family… and peace of mind for you. But it is not a good investment if you looking for a way to make money. A term life insurance policy offers protection, not the promise of growth or earnings. Unlike other, more expensive types of insurance coverage, a term policy accumulates no cash value whatsoever. What happens if you outlive your term life policy (or choose to cancel it any time within the 30-year period)? You get zero back. The insurance company keeps all the money you paid in premiums. That’s why term life insurance is not an investment. If a potentially profitable investment is what you seek, try stocks, bonds, and mutual funds.

That’s not to say that a term policy offers no return. Term life insurance offers a very important, but intangible, return on the money you pay toward the policy premiums. You can’t touch the return. Can’t count it. Can’t spend it. It’s comfort from the knowledge that you have taken action to protect your dependents in the event you die. The benefit from your term life insurance policy can help your family maintain the lifestyle you have worked so hard to provide. Your policy benefit can cover mortgage payments, car payments, day-to-day expenses, plus your kids’ college fund and other important commitments.

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