Question: I'm 33, make about $150,000 a year and am starting from scratch to plan for retirement. A person close to me wants to sell me life insurance with a cash value feature as a way to save. Can you help me here? What do you think is my best option? --Carlos R., Houston, Texas
Answer: I'm not sure what "a person close" to you means. A relative? Friend? An acquaintance or co-worker? But whoever it is, the first thing I suggest you do is put some distance between you and that person, at least as far as your finances are concerned.
Life insurance as a savings account
There are various types of life insurance but they all have some common attributes. You pay an insurance company what are called premiums. At your death, the life insurance company pays an amount to the people you named in your policy, called beneficiaries. Also it's interesting that if you named a beneficiary(ies) they'd receive the insurance amount free of income tax.
ReplyDeleteYou and your family's financial security are the main goals of life insurance. Every parent wants to know that even when they are not present, their children are being cared for. Your loved ones won't suffer a financial loss without you, thanks to life insurance in Houston.
ReplyDelete