Understanding what life insurance is and how to leverage it as an asset can be the secret to creating great wealth for yourself and your family.
Most young Americans are not thinking about life insurance policies, but they should. Life insurance is the ultimate financial tool for those big "what if" moments. It can be useful even when the death benefit is not triggered, as long as it is used appropriately. Life insurance is not a panacea, and some younger Americans may not have the resources to devote to large policies. But it is a mistake to assume that only older couples with children and homes need life insurance.
Don’t think of life insurance as a vehicle that will only become valuable when you die. Think of it as a tax-savvy income source you can hold onto and use for your entire life. Buying into a policy early or buying one for your children can have incredible financial benefits for your family for generations. Don’t dismiss whole life insurance. Maintain enough term insurance to replace your future income.
Buying Life insurance at a younger age locks in lower premiums and reduces the total amount you’ll spend on life insurance over the course of your lifetime. You simply can’t beat the life insurance rates you receive in your 20s and 30s.
Retirement planning is ideally a lifelong process. You can start at any time, but it works best if you factor it into your financial planning from the beginning. That’s the best way to ensure a safe, secure, and fun retirement.