Is life insurance an investment?
Posted on May 18, 2008
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There are people who consider buying a life insurance in order to pay for their children’s college education plans or buy equipment and appliances in their homes. However this is not a good idea, because premiums are used to buy the coverage for the death benefit and pay for expenses that is used in the insurance itself. If you do buy life insurance, make sure you and your spouse have adequate cover before buying for your children. Also, avoid any extra coverage that you will not need. If you can’t afford permanent insurance that you do need, consider a combination of term and permanent life insurance policy.
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