You may not need the best life insurance to provide for your family and pay for your death. Rather than paying life insurance companies, you can save what you would pay in premiums or invest those funds.
Insurance premiums can cost hundreds to thousands of dollars each month. Instead of paying that to a business, put those funds in a high-interest savings account.
The cost of your premium amount will greatly depend on the payout amount and your age. For example, a $500,000 policy could cost:
- A 35-year-old person $430 a month.
- A 50-year-old person $1,300 a month.
- A 65-year-old person $5,000 a month.
Over a period of 20 years, you could save hundreds of thousands.
When those funds are in an account earning interest, you can earn even more for free. Look for long-term saving accounts, like certificates of deposit (CD), that have higher rates than regular accounts.
A CD or high-yield account can have an interest rate up to two percent. But, if you really want to make your money work for you, try investing in long-term stocks and mutual funds. The average stock over a decade has a 10 percent return on investment. However, there is a possibility of losing money.
Some investments are financially sounder than others. Mutual funds, for example, and stocks that move with the market are usually safer than new companies or those that the market considers “volatile.”
You can also work with investors, day traders, and other groups that invest your money on your behalf. Make sure the company is reliable and has good reviews from other customers.