There are various ways people look at life insurance products. How do you view life insurance? Do you see it as a necessity or luxury? Here is our take on the issue.

Number one thing you have to look at is where do you want to be in 10, 20, 30, 40 years? Another important aspect is the starting point, i.e. what age are you now? If you’re twenty, you may view a life insurance policy as a needless luxury, because you may have more urgent bills. The last thing on your mind is what you’ll be doing at 60. It’s a little like the formula in the picture here. If you’re just trying to get from point A to point B, a formula type race car is definitely a luxury.

Necessity or Luxury?

However, if you’re looking to win a formula race, then is the car in the picture a necessity or luxury? Life insurance operates on a is a similar principle. If you’re looking to achieve financial independence and always have a cushion and always have your assets, including you, protected against any unfortunate events, then life insurance becomes a necessity.

Head Start

The earlier you get on the proper track, the better. If your parents didn’t start you off with a Juvenile Policy, then you already missed out on a great opportunity. Getting your first policy at say 25 is still a great head start into your professional stage of your life. Policies at this age are relatively inexpensive and you still have plenty of time to accumulate a good pile of cash, while preserving your insurability for later years.

There are two basic ways to go. If your looking at a perspective of generating a large income in the upcoming years, then it is probably a good idea to start off with a Term Policy, which can later be converted into a Whole Life Policy. If you can spare a few hundred monthly at 25 to put into a whole life policy, you’ll be surprised later. Such sums can generate considerable cash value in a twenty year pay whole life policy.