Personal Financial Planning: Life Insurance

Couples and individuals buy life insurance as a way of saving money and if someone dies then the rest of the family will be, more or less, financially cared for...  80% of all couple and individuals who take out life insurance NEVER NEED it and end up cashing the policy in once they retire.  Unfortunately, those people who subscribe to life insurance, don't realize that in order to actually benefit from life insurance one must actually die as soon after the probationary period as possible in order for the life insurance policy to be cost effective.

A better solution since 80% of those who own life insurance policies never have to use them, is to take the money that you would have given to the life insurance company every month and invest that money in a mutual fund.

For example...

if you save $2.50 each day and at the end of the month invest that money into a mutual fund and do this every day and every month for 40 years...  then, at the end of that 40 year period, you would have roughly $500.000.  $2.50/day equals about $75/month based upon 30 day months...  so it could be a little higher...

Insurance companies do not tell you that...  and what they actually do is take your monthly premiums and invest those premiums into a mutual fund....

YOU ARE ONLY AS SMART AS YOU WANT TO BE...