How can I invest a benefit of life insurance death? Part 2

How can I invest a benefit of life insurance death? Part 2 -

In Part 1 of this article, I talk about the importance of planning carefully how you will use any life insurance payment you receive.

My first advice is to consider annuitizing death benefit to generate a guaranteed income for the future. Here are my two recommendations:

1. Life Insurance Purchase

Looks like an obvious answer from me, right !? But ask yourself two key questions: Have you as much coverage as you need And the other people in your family

Because you have more money ? handy than normal, you can go about securing your life insurance the right way (and win the game!). For example, you can:

• Get permanent insurance life on reduced payment schedule with single premium or limited premium whole life policies. Instead of sending the life insurance company checks for the rest of your life, you can set up a policy to be "paid" after 20 payments, 10 payments, or even with a single premium.

Today, a 40 year old man in excellent health who smoke could buy $ 1 million of coverage of all life for a single premium of only $ 115,101.76 . That's a pretty impressive return, would not you say?

In addition, the policy will never be extinguished and accumulate cash value at a minimum rate guaranteed each year, a tax deferral.

• Protect your children with a blanket, they can not lose . As you'll see in the video below, it's a great time to buy such a policy for your children or grandchildren, too. I like to call it "a gift that lasts a lifetime."

• Set up a trust to fund your life insurance. instead of paying all at once your policy off (you may be worried about paying more than you should), you can set up a trust to pay your automatically premiums each year. your confidence can also pay for other expenses, such as insurance long term care

it should be noted that life insurance is not considered an investment. But in my opinion it is one of the smartest ways you can spend your money.

2. ready for a happy retirement

According to the Bank of spring 2014 Merrill Edge of America report, 55% of "high mass" Americans - individuals with $ 50,000 $ 250,000 in investable assets - retirement money are afraid to miss (only 27% are afraid to talk in public [1945010!])

intelligent planning can help you keep that fear from ever becoming a reality

Make maximum contributions to your retirement accounts :. 401 (k), IRA, etc. With tax-deferred contributions to the growth and employer (if applicable), almost all financial advisors agree that this is your best bet to build strong retirement savings. Build a diversified portfolio of investments. It is a piece of investment advice cliché, but it is based on the time tested, tried and true results.

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