Other Uses of Life Insurance

Other Uses of Life Insurance

How investment part on your term life insurance rate works

Online term life insurance rate has long been recognized for its many advantages as a preferred form of property. The values of other property, such as real estate, stocks, bonds, precious metals, etc., are not to be denied, but none offers the unique attributes of life insurance.

A primary function of life insurance is to create an immediate estate for the insured by promising to pay a specific sum of dollars whenever the insured’s death may occur. The life insurance estate becomes a reality as soon as the policy is placed in force. A relatively small premium can establish a substantial estate and all that is required is that the policy owner pays the premiums as they become due. People may endeavor to accomplish the same objective by depositing their savings regularly in a bank or other financial institution, but that alternative plan requires years to complete and there is no guarantee of success. A person’s investment and savings plans can be interrupted or completely destroyed by disabilities and premature death. Only life insurance can guarantee that this does not happen.

With online term life insurance rate, the policy owner is not confronted with the sometimes difficult tasks involved in managing the investment. The insurance company, with its vast expertise and experience, assumes management for the policy owner.

Life insurance also is a good investment because the cash values in a policy may be borrowed at a reasonable rate of interest and without delay or publicity.

Life insurance undergoes impressive appreciation in value when the death of the insured occurs, precisely when the money is needed. Particularly during the early policy years, the proceeds paid at death can equal many, many times the amount paid in premiums. Other forms of property are subject to fluctuation in value and may or may not offer comparable appreciation. Get your free online life insurance quotes in 2 minutes.

Compared with other forms of property, another significant difference is that the full face value of a life insurance policy is guaranteed at the death of the insured. This is not true of real estate, stocks, bonds or other forms of property; so it is little wonder that life insurance has been labeled by most financial experts as a preferred form of property.

Proceeds of a life insurance policy are paid directly to the named beneficiary at the insured’s death, usually within hours after all claim papers have been received. Such proceeds are not subject to probate expense, shrinkage, publicity or possible delays based on the slow sale of a property.

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