We know that investing is an important part of financial planning, but what qualifies as an investment? At Bryan Insurance Agency LLC, serving New Windsor, NY, and the surrounding areas, we want to help clients understand how insurance works into their investment plans. Keep reading to learn more about life insurance as an investment.
Is Life Insurance an Investment?
Yes, life insurance can be considered a type of investment. Life insurance is different from other investments because this is not an investment you will benefit from directly. This is an investment that your beneficiary will benefit from in the event of your death. This is the type of investment you make on behalf of others.
How Does Life Insurance Work?
When you purchase a life insurance policy, you will set it for a specific amount. This benefit amount is the amount of money that will be paid to your beneficiaries in the event of your death. You will pay a monthly premium for this insurance policy each month.
Your beneficiary will file the benefit claim in the event of your death. The insurance company will then disperse the benefit amount to them.
How Much Life Insurance Should I Purchase?
This is a very personal question, and the answer is based on many different factors. The easiest way to determine how much life insurance to purchase is to sit down with an insurance rep and discuss the specific details of your financial situation and your goals for your family.
If you want to learn more about life insurance, please get in touch with us at Bryan Insurance Agency LLC, serving New Windsor, NY, and the surrounding areas. We will happily answer your questions and find the right products for you.