In case you could not survive to pay your home mortgage, if you have life insurance your child or spouse will continue paying that property. This is like an investment for unwanted condition, however who want to die, although everyone will go to die too. Life insurance companies have the exact formula according to your financial condition.
Even you can find a broker to plan the good life insurance companies for your needs. There always cost few buck but you will get the right life insurance policy with good rating. This is important because many life insurance companies offer their product with different rating. The broker will guide to illustrate each insurance company, and compare the formula on each one.
You don’t have to worry, because all of them will give same result although in different condition. Broker will estimate the exact formula to your needs, a good policy from trusted company will be 3-5 times your annual salary. If you are making annually 100K, you can insure yourself to 500K. If something happen to you, your family will get 500K in cash, they can invest in stock market or other investment product to get dividends that will cover the cost of their living.
Even in a term life insurance, you can get money back from Life Insurance Company each month instead of paying monthly. In any case some percentages of investment return pay your premium and give extra to you. This is a good investment that will cover basic thing in unwanted situation. Even tough it can increase your investment value in different options.
Life insurance as an investment and how it work
If you plan a life insurance for an investment, you should find the good life insurance company. If you are with life insurance Company rating “B” and the rates are 10 % higher in other life insurance company rating “B”, this is not good policy. If the rates are in lines with other policy charging, this is probably OK. The right policy will give you the real investment in beginning, and you can start in long term as investment will grow.
Perhaps you have many expenses, car loan, child education, those will be paid off by benefit of life insurance. In premium policy have flexible money back as your investment return. In long run also you can renew the policy or expand to higher coverage, but in same paying as before. However the amount return in life insurance smaller than if you invest direct in open market.