Which Insurance Policy Works Best for a Recent College Graduate?
Answer: Life insurance is a financial tool. What is the goal? First you choose the goal, then you choose the tool that takes you to the lowest cost.
Considering the cash value behind life insurance, it is actually bad for people in mathematics. Approximately 10% of what you pay, go to “cash value.” This is a savings account for those who do not realize paying $ 3,000 annually, to get a $ 300 cash price, some are stupid. This is also the most expensive type of life insurance you can buy.
Is your goal to pay for your funeral? Provide for a wife and children? Or to build money for retirement? In all those goals, there are completely different products, in the absence of a goal, I recommend:
- Avoid debt like plague – Use every cent to get out of debt as soon as possible.
- Before purchasing any other type of “life insurance” investment, maximize your retirement accounts.
- Not sold. Decide what is the goal, do your own research, and run numbers before buying.