Don’t Gamble with Your Life (Insurance Policy)
It’s been fairly common in recent years for individuals to take plenty of chances with their life insurance. Whether they were thinking about taking on universal life or variable life versus the more traditional types like term and whole, some experts in the life insurance game feel that it’s not worth it to take risks with their policies.
Potential Investment Losses
One reason that experts suggest individuals stick with simple plans when deciding on life insurance is because the other types of policies can actually be categorized as investments and essentially run the risk of loss, just like stocks. Think about it. When you play the stock market, you already know the risk you’re running by deciding to invest. You know when you hand your money over that there’s a chance of stock prices rise or plummet, which means that you can gain a great deal of money or lose it all quickly.
However, in the life insurance game, most people don’t want to take risks that can result in them losing money. The main reason is because the outcome will be so much different. If you lose money in the stock market, it’s a loss for you. However, if you lose money within your life insurance policy, the loss is for your family.
The last thing you probably want is to have too much of your life insurance policy tied up in the financial market, only to lose it for your loved ones after you’re long gone. So, as advised by the experts, if you’re thinking about gambling with tricky life insurance policy types, you might want to think about it more closely.