Life insurance is becoming a good solution in situations when immediate cash may be required in the event of death of the insured. “We see young parents buying term life insurance believing that the income of a working spouse will be replaced by income from the policy if that spouse dies early,” says Liza Horvath, the president of Monterey Trust Management.
Insurance can also be used to finance a mortgage in the event of the property owner death. Perhaps, this is why one in five Americans buys more than just life insurance. It is noteworthy that such policies are most common among middle-income citizens who are over 50 years old.
“Life insurance is the most popular insurance contract in the United States today. In this case, the insured person regularly makes payments to the insurance company to be invested in financial assets with a low risk level and fixed income. After a while, when investments begin to generate income, it is credited to the policyholder account. The latter has the right to withdraw money from his account, and in some cases - get it on credit at very low interest rates,” explains Liza Horvath.
Photos are from open sources.