How is Life Insurance Actually an Investment?
W henever it comes to life insurance, a lot of young adults find it useless to invest in life insurance as they believe that it is very unlikely that they would die young since they are healthy and dynamic. To them, paying out money in the form of premiums is equivalent to squandering money. Ironically, buying a life cover is a worthwhile investment option. Although it might be a little tricky for some people to understand, in this blog we have simplified every detail to make you understand how life insurance policies can actually be so productive. Before we begin we must understand the basics. What is life insurance? Life Insurance is simply a contract between an insurance policy holder and an insurance company, where the insurer (the insurance company) promises to pay a sum of money in exchange for a premium, upon the death of an insured person or after a set period. This amount is given only to the nominee. Now, let’s just dig deeper into the fact as to how can it actually be a...