Now term assurance is an investment that also incorporates some death benefit but pays out at the end of the term regardless.
First establish what you want.
Do you want life assurance?
Do you want an investment?
Do you want an investment coupled with life assurance?
These are important considerations otherwise you end up partly with what you want and something you didn't want.
I believe life assurance/ insurance should be kept completely seperate to investment.
The best thing is to have a retirement account and name a beneficiary.
Back when "they" started life insurance, almost nobody had retirement accounts. Now very many people have retirement accounts.
I've been reading a lot about life insurance, and what's the best type to fit me. Lots of experts are saying buy term and invest the difference. Questions runs through my brain, Where do I invest the difference? Where do you invest it? I want to invest where you invest. Do people actually invest the difference, or just spend it? Does this concept work for poor, lower middle class, upper middle class, and/or the rich? Does it consider the culture differences of final expense? Asian traditional funeral (buddhist, shaman religion) typically cost $40,000 to $60,000.
To my understanding, this concept comes with the assumption that everyone has a retirement setup and max contribute to guarantee a financial future. In reality, majority of American don't have a retirement plan setup or contribute enough to retire. Also, statistic shows that people are living longer, do you want to throw away money on a term for 30 years, than find out you have to get another policy to cover until you die because your investment is not enough to cover final expenses. Buying term at 30 cost a lot less than buying at 60. Is it really an investment when you out live your policy and the insurance company keeps all that money you've been paying into your term policy?
Any thoughts or ideas to help me understand.
