What is life insurance?
Life insurance is a contract in which you transfer the risk of loss to an insurance company. If the client loses his life, the company sends a check for the amount stipulated in the policy to the client’s beneficiaries. There are many types of Life Insurance policies. Many outside companies take advantage and don’t think about how they are affecting the customer, but only one policy is the best. These are the three types of policies in the Life Insurance Market.
Whole Life Insurance or Cash Value
Cash value whole life insurance has advantages and disadvantages. On the plus side, a portion of your premium is allocated to the savings portion. It has many of the benefits associated with a 401(k) or IRA. It earns interest, albeit at a small rate. However, it is tax-deferred and unlimited. Cash value also has other advantages. Now the bad news. Premiums for a whole life insurance policy are much higher than for term life insurance because you pay the cash value and the permanent death benefit. And, the insurer doesn’t pay for it after her death. However, you can also use your cash value to pay your premiums, giving you a little more flexibility. You can put your policy’s cash value to work for you.
Term life insurance.
This is the cheapest of all life insurance because this policy has no effective accumulation and this policy is valid for a specific time just the time for the needs of the client. This policy can be used for a term of 10, 20, or 30 years, so this type of policy is the most economical and also the best for the client. We use this policy and with the money that you could normally spend on a Universal Life or Whole Life policy, with that money that you could spend on those junk policies, we get it to start investing in your future. Magnifico Financial Services’ plan is to instantly protect you with a 30-year term life policy and start investing for retirement in a Roth IRA with the rest of the money.
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