When it comes to planning ahead in life, one of the biggest investment opportunities that you have is a personal insurance policy. Looking out for your health and finances is a big part to staying financially stable and healthy. However, there are a few advantages and disadvantages to investing in a policy. Today, we are going to look at a few of each to give you a snapshot look of what you can expect from investing with a company such as Insurdinary.
Advantages Of A Personal Insurance Policy
Affordable
For just about any person, one of the biggest advantages of having a personal insurance policy is that they are relatively cheap. When comparing what you will be paying monthly to the amount that you could be covered for in the event of an emergency, you will find that it is nice to have that nest egg of protection if you ever need to use it. Depending on the type of insurance policy you get, your payments can be very affordable, no matter what your budget is.
Flexible
One size does not fit all when it comes to insurance, so having the flexibility of being able to choose which insurance policy, which company, and which coverage you would like is a huge advantage of investing into a policy. Many people are scared to go with a certain company due to the stories they hear about each one, that is why having a wide variety of choices makes it much easier for you to do your research and find the insurance policy that is perfect for you.
Tax Benefits
A good investment for anyone is one that is non-taxed. That is why choosing to invest in a life insurance death benefit is so popular, it is not taxed. The cash value that is accumulated and any of the dividends that are accumulated are tax deffered to insure that you are getting the most money out of your insurance policy investment. After all, there are only a few things that you can invest in that are not taxed, and having a full payout in the event of an untimely death is much needed.
Cash Value
If you choose to go with a cash value life insurance, you can ultimately use the accumulated money to pay of debts, buy a home, or get it paid in dividends to have a passive income cash flow. With cash building up in your life insurance fund, you may choose to go with a different type of funeral or burial service which will not need as much money. You can cash out on the extra money in your policy down the road to recoup your investment.
No Worries
Last but not least, one of the most sought after reasons that people choose to invest in an insurance policy is so that they have no worries when it comes to emergency situations. Untimely deaths, unforeseen accidents, and other unplanned expenses can wreak havoc on you financially and emotionally. Having an insurance policy that is able to cover you and take care of these expenses is a great way to remain stress free throughout your life.
Disadvantages Of A Personal Insurance Policy
Trustworthiness
Perhaps one of the biggest complaints with anyone who is wary of paying into an insurance policy is the trusting of a large corporation. After all, if a company was to collapse or go bankrupt, you could be stranded without any of the money you have invested into your policy. However, with a good site that allows you to see all of your choices of insurance companies and the insurance policies that they offer, you are able to quickly read reviews and get to know the company long before you invest your hard earned money into their company. With a little bit of research, you should be able to find a company that has been around for a long time and has made a good name for themselves.
Can Be Confusing
Another big reason that many choose to not deal with an insurance investment is for the simple fact that the process has a bad reputation of being confusing. With so many different coverage to choose from and all of the different speculations of each, it is easy to see how confusing it might be for those who have never gotten insurance before. Luckily, with an all in one site like Insurdinary, you can easily find just what you need to make the whole process easier. With helpful guides and easy to manage company and insurance plan details, you no longer have to do long winded research to find the perfect plan for you.
Not Absolutely Necessary
While many people have insurance policies and many places will ask that you get insurance, it is not a necessity. An insurance plan can cost you a monthly payment that you may not be able to afford and if you choose to, you can go without it. While it is always a good idea to keep you and others protected by the financial burden of an emergency expense, it can be avoided if necessary. It is important to think about every aspect of your insurance policy to ensure that not having it will not put you or others at risk of having to pay a larger sum out of pocket down the road as this can cause emotional and financial distress.
Opportunity Cost
With constant bills and everyday costs, the thought of having to pay into an insurance policy that you may never use can seem a bit intimidating. Will you ever see that money? Could I be using that money to fund something else in my life at this moment? While you are ultimately in charge of your own money, you must think of the future and anyone who may be in charge of your funeral, in the case of a life insurance policy, to ensure they are not footing a large bill. Make sure that you are not leaving your loved ones with debt that they have to accrue due to your lack of insurance.
