Do You Need Universal Life Insurance?
Do baby boomers need life insurance? Unless you are independently wealthy, anyone who owns some property, is married or has kids should seriously consider purchasing life insurance. Life insurance is there to protect your family and loved ones in case something, specifically death, should happen early in your life. In fact, it might be better called death insurance, but that is too morbid, so folks would probably not buy it.
The question you need to ask yourself when choosong anything about life insurance is what type of life insurance should I get? What types of life insurance are available to me (and my “me”, I men a person who is relatively healthy, with no know diseases such as cancer or bad habits, although smokers and drinker can get insurance, it just costs them more)? You can start out with [spin[simple term life|term life[/spin] insurance, which is the least cost cost &#xTO;KEN2% you can get. It basically covers you for the set amount on the policy, should you die (there are some exclusions about the type of death, mainly you cannot buy a contract and then commit suicide and demand your beneficiary to be paid).
Term life Insurance is what I call simple death insurance. It helps out you when you die. AFter that, there are a multitude of other life policies, know as universal life, group life, whole life, and such. The concept is to pay more in premiums (usually 10 time more or higher), and buy what is referred to as a deferred annuity. This means you are building money up in an account that “theoretically” can be used as part of your retirement money, should you now die unexpectedly along the way. For those of you who are terrible savers, and think social security will be round when you get old, and cover all your expenses, then this is a great choice for you, because when you retire, there will be some money there for you to live on besides social security.
The problem I see with these whole life policies is that they cost a lot of money, for a lower, non-guaranteed return on investment. Generally, one can take the same amount of money, invest in the stock market or mutual funds and do much better. But doing that means you have no &#xTO;KEN3%, unless you also buy a term policy.
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