Life Insurance

Life Insurance:

Life insurance (although this should not be the case) is a very controversial issue yet. There seem to be many types of life insurance, but there are actually only two types. They are term insurance and life insurance (monetary value). Term insurance is pure insurance. Protects you over a period of time. Life insurance is all insurance and an additional account called the cash receipt value. In general, consumer reports state that long-term insurance is the most economical option and has been for a long time. However, whole life insurance is the most prevalent in today's society. Which one should we buy?

The purpose of life Insurance:

Let's talk about the purpose of life insurance. Once the insurance target becomes aware, everything else will come into place. The purpose of life insurance is the same in any other type of insurance. Is "insurance against loss". Car insurance is to ensure your car or someone else in the event of an accident. In other words, since you may not be able to afford the damage yourself, the insurance will be in place. Securing homeowners is insurance against the loss of your home or its objects. So, since you may not be able to pay for a new home, you buy an insurance policy to cover that.

Life Insurance is the Same thing

Life insurance is the same thing. It is a guarantee against losing your life. If you have a family, you will not be able to support yourself after your death. So you have to take life insurance so if something happens to you, your family can replace your income. Life insurance is not about enriching yourself or your grandchildren or giving them a reason to kill you. Life insurance is not meant to help you retire (otherwise it will be called retirement insurance)! Life insurance should replace your income if you die. But the bad guys made us believe otherwise, so they could overburden us and sell all sorts of other things to get money.

How does life insurance work?

Instead of complicating things, I will simply explain how and what happens in the policy. In fact, it will be simplified because we will be here all day long. This is an example. Say you are 31 years old. A 30-year standard insurance policy will cost $ 300,000 for about $ 30 a month. Now ... If you want to buy $ 300 thousand all the time, you can pay $ 200 a month. So, instead of paying $ 20 (actual cost), the amount will be deducted $ 90 and will then be placed in a savings account.

Accumulate in a Separate

Now, that $ 90 will continue to accumulate in a separate account for you. As a general rule, if you want to withdraw a portion of your money from your account, you can then borrow the amount from your account and pay interest. Now, suppose you take $ 90 a month and give it to your bank. If you are withdrawing money from your bank account and telling you to borrow your money and pay it back with interest, you are likely to go to someone's head. But somehow, on the insurance side, it's okay

Borrowing their own money:

This is because most people do not realize they are borrowing their own money. You see, one of the ways that companies become rich are paying people to pay for them, then circumventing, borrowing their money and paying more interest! Equity loans are another example, but they are different cues.

Deal or no deal

Let's stay with the previous illustration. Suppose that the 2,000-year-old person (in good health) bought the said futures contract (20 years, $ 300,000 to $ 20 per month). If these people pay $ 20 a month, that's $ 300 a year. If you take it and hit it over 20 years, you will have $ 5,000. Therefore, each person will pay $ 5,000 over the service period. A thousand individuals who have subscribed to this policy will have to pay 4.8 million premiums to the company. The insurance company has already calculated that 30 healthy people (ages 32 to 52) will die. So if 30 people die, the company will pay 30 × 300,000 or $ 5,000,000. Thus, if the company paid $ 5,000,000 and received $ 5,00,000, it would make a profit of $ 900,000.