Permanent Or Term Insurances
There are many insurance companies in the world that offer their own life insurances policy.
It is very difficult to choose which one is the best. What should you do? Another strategy that will work is to continue to change insurance companies. Any company will make more money by selling to people who are more sensitive to prices.
A person in need of insurance may be willing to pay a lot of money. A person who constantly changes insurance shows that he or she is sensitive and will get a lower cost.
Your health is not the only thing you can guarantee. You can also Insurances your home and your car. There are many websites that offer free car insurance quotes and home insurance quotes.
There are usually two types of health insurance.
Time insurance pays for life insurance while betting that you are going to die. He bet $ 2,000 a year. If you die that year, you win, say, $ 1 million. If you do not die, there is your $ 2,000.
Life insurance has a huge downside – You die first before you get your money back. Many insurance companies combine life insurance with some type of investment. Is this a good idea? Most of the time, it is not.
Permanent insurance is savings insurance. It says you have paid $ 20,000 a year for 10 years. If you die within those 10 years, you will receive $ 1 million. However, at the end of 10 years, if you fail to die, you still get your $ 200,000, usually interest.
Your insurance agent will usually recommend this. Why? Because they get more commission on this. Why? Because insurance companies make more money with this arrangement. Why? Because it’s not good for you, at least often.
First of all, this is not an apple compared to an apple. It says you pay for your health insurance to get $ 1 million. Maybe you have to pay $ 2,000 a year. With combined insurance, to get $ 1 million compensation, you need to pay $ 20,000 a year, but only for 10 years. Usually, an insurance agent will make things even more confusing by offering you a combined $ 100 million insurance policy for $ 2,000 / year.
Now how do you make an apple? He compares perpetual insurance with regular insurance and regular investment. Therefore, permanent insurance of $ 20,000 per year is equivalent to $ 2,000 and $ 18,000 annual insurance. If you buy $ 2,000 term insurance and invest $ 18,000 a year, how much money will you make after 10 years? Imitation shows that you will make $ 286,874.
Now, is eternal insurance a good insurance policy? Well, just compare that $ 286,874 with what you will get under the term. You will usually get less. If you get less, the insurance company does more. So insurance companies offer higher prices so that the insurance agent can sell lasting insurance.
However, permanent insurance has one benefit. Tax benefits. Your goods can be collected tax-free. Also, regular investments are usually subject to asset tax while insurance may not be available.
So a good idea is to just buy a permanent insurance policy for $ 0 coverage. They will compare apple’s ROI for permanent insurance with apple’s. Therefore, all combined funds will be converted to an insurance company that effectively provides the same service. Well, it works, it produces, that’s why governments forbid that, that’s right.