Life Insurance: Pros and Cons

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Now considered the preferred investment of Americans, life insurance has not always been as successful. Often seen as a unique inheritance investment, this savings plan has long been overshadowed by a craze for passbooks or stone investments.

Let’s take a look at 10 positive points about the reasons for buying life insurance, without forgetting its few negative points.

1. Building up savings

Whether it is a question of building up precautionary/preventive savings or savings for a very specific project, life insurance meets the needs of each saver by allowing the withdrawal of part of the funds invested while keeping the contract active. Be careful, some life insurance contracts require a minimum amount of money to be left on the invested supports.

2. Availability of funds

Funds invested in a life insurance policy are available at any time! To recover your invested money, you will have to make a partial or total surrender.

3. Investment diversification

You can choose to invest your funds in money market instruments, bonds, or equities. Your contract allows you to diversify your investments and choose the composition of your portfolio with most brokers.

Don’t forget to diversify your investments: never put all your “eggs in one basket”.


4. Suitable for all investor profiles

Whether you are very cautious or accept the risk, you are obliged to find a contract that suits your personality and your appetite for risk. A life insurance contract in dollars

5. Advantageous taxation

It’s a great tax package! The older the policy, the lower the capital gains tax. In this article, you will find the taxation of life insurance in its entirety


6. The life of the contract

There is no minimum or maximum regulation applied to life insurance contracts. Each contract is therefore valid until the death of the subscriber


7. The ceiling for this type of life insurance contract

Unlike the A passbook, there is no maximum limit on the amounts invested or payments. You are therefore free to deposit as much money as you wish to save regularly. You are also free to have as much investment capital as you wish in your portfolio. The only minimum that you can reach is the opening of your contract; this will be imposed by the broker you have chosen because, depending on the funds in your portfolio, there are minimums to be invested.

8. Management under mandate or co-management

You are not obliged to know about investments and finances because thanks to management under a mandate, piloted management, or co-piloted management, your contract will be monitored, advised, and even managed for you.


9. Online life insurance cost

A somewhat particular advantage, because it only concerns online life insurance contracts, lies in the entry, exit, payment, and sometimes arbitration fees, which are very often completely free. Be sure to check this point when you take out your investment.

As we have already said, these are very often contracts that are available online.

10. Inheritance and beneficiaries

The life investment contract is specially designed to help you in the transmission of your assets. This means that at the time of your subscription, several stages will concern the estate and the beneficiaries, in particular without the constraint of a family link if the saver so wishes.