Life insurance comes in all kinds of flavors. Some of them are perfect for when you’re married and have children. They can be had for a variety of price points and serve to protect your family from a sudden and unexpected death. Divorce changes things. Now, you are going to have to look at a life insurance policy in a different way. It needs to be considered for it’s value as an instrument of investment.
Taking Care of Your Children
The cheap life insurance is something you pay for and get virtually nothing out of it unless you die, then, you don’t really get anything personally out of that, do you? The beneficiaries on your policy are the significant consideration here, and if it is your children it can be a very worthwhile consideration. You may have had an ugly, contested divorce and hate your ex, but you love your children and don’t want to take it out on them. Making them the beneficiaries of a life insurance policy on you would be a real plus here because it will reinforce them knowing that you care about them.
As An Investment Strategy
The notion that using life insurance as an investment strategy would be specious. The life insurance company has to make some money off of it and that starts with big commission they pay to the agent who sells you the policy! Thus, if you don’t have children or anyone else to consider, you might want to take the monies you might otherwise spend on life insurance premiums, and put it into a different investment strategy. Keep in mind that you are seeking to grow your money in a secure fashion that is going to build up an account that would be competitive with what you might accrue with a whole life insurance policy.
That could mean investing in the stock market . . . which has been a roller coaster ride in the past few years. It could be hedging your bet by having some precious metals in your portfolio but beware! If you keep them on hand they can be stolen. If you bank them with the metal exchange they can go out of business and you lose it all.
Finally, there are forms of life insurance that lie outside the normal types, they more closely resemble the form factor of an annuity. These can consist of a one-time payment that buys you a big payout (or at least your beneficiaries) when you pass away. Considering how much cash you have on hand, this could be a good way to protect your loved ones and get back to work making money. By now, you know you’re going to need plenty of it!