Is Life Insurance a Good Investment?

When I was young, I was told that buying life insurance was like betting that you are going to die young. I had adopted that mentality, and as a young, single man it was easy to write-off life insurance as such.

life insurance contract

As I matured, I realized that my income was not only important to me, but it was important to my family. My income and all of my work experience was something that my family was relying upon. What would happen If my family was to lose me and my income during my productive years? I could no longer justify the small monthly savings in my head, as I wanted to be responsible for my family, even after I am gone. I hope to live a long life, with a fruitful retirement, watching my grandchildren mature.

I still look at life insurance, as wager of sorts, but now I see it more as a hedge bet against a productive life. There are a few things that I have learned along the way, and I now feel that every married man or every responsible head of household should insure their means of production.

retirement planning

I also learned that you don’t need to actually die to have your life insurance help out your family. There is a provision that many life insurance policies have, and almost always with policies above $25,000. This is called a Living Benefit, and when I learned that I could have such a policy, purchasing life insurance became a great deal for my piece of mind! A living benefit is part of a life insurance policy that will pay your beneficiaries if you are still alive, yet contract a terminal disease, or otherwise become incapacitated. Think of what your family would face if you had to spend your family’s life savings on end of life care. Having life insurance is a great idea if you want to ensure that you won’t be a financial burden on your family.