Whether you have family or are on your own, you should consider investing in life insurance; for the average person, life insurance helps protect friends or loved ones. However, for individuals with a great deal of accumulated wealth, such as successful entrepreneur Nicholas Kyriacopoulos, life insurance can also serve as a wealth management tool.
Term Insurance Vs Permanent Insurance
Life insurance typically comes in two types: term and permanent. Term, or temporary, insurance covers a person for a set period, typically between five and 30 years. Permanent insurance, as the name implies, covers the holder for life as long as the premiums get paid on time. Term insurance tends to be a cheaper option and might be ideal for somebody who is young and doesn’t have a lot of income to put toward insurance. Permanent insurance provides more long-term benefits, and wise investors like Nicholas Kyriacopoulos know that it has cash and loan value as well. In most situations, it is beneficial to opt for permanent insurance unless you need to save money in the short-term.
Why Do You Need Life Insurance?
A person typically gets life insurance to protect their family member and friends. However, for successful innovators with lots of assets, like Nicholas Kyriacopoulos, life insurance serves as another tool to build a legacy with the wealth they have earned throughout their lives. Even those without many assets can benefit from a strong life insurance plan. Your insurance can help your family pay their way out of debt, continue living within the quality of life they expect, or create an inheritance for your children. Those without families can still make a difference through a life insurance policy, as friends, schools, and charitable organizations can all serve as beneficiaries. This is a way to create a legacy for yourself and positively impact the world after you die.
How Much Insurance Do You Need?
The big question on many people’s minds is howmuch of an insurance policy they should take out. Many people have formulas regarding this, such as a multiple of your annual income or a certain amount of money per dependent. To truly determine how much life insurance you need, consider what you want your family to be able to do financially after you die. Do you have debts that need to be repaid? How long of a time do you want to give your spouse and/or children before they have to stop relying on your annual income? After you answer these questions, you should take out a policy that is slightly more than you need so that you can cover any legal fees and funeral expenses.
When to Get Insurance
It is best to purchase life insurance at the most affordable price when you are young and relatively risk-free, as premiums go up with age, illness, and other risk factors. If you are a heavy user of alcohol or addictive substances, you should strive to curb that usage in order to reduce the premium cost. Ideally, you should get your first life insurance policy in early adulthood and let the insurance grow to meet your needs as you get older. Life insurance is an important asset to add to your financial portfolio. It can keep your loved ones safe and financially secure if the worst should happen to you. As experts such as Nicholas Kyriacopoulos know, a good life insurance policy can also be a financial tool that you can use.