Some people think life insurance is just something for rich people who have a lot of extra cash. In fact, when started early, a good life insurance policy is a great investment that can help you in your retirement. When purchased early and before you’re facing health and other challenges, life insurance is often a good choice.

Then there are different types of policies. Most people are familiar with term life insurance, which is when you pay premiums for a death benefit which is paid out over a finite amount of time. The whole and universal life insurance policies which are also referred to as permanent or cash value policies are another option.

Most of the time universal policies are cheaper than whole life and can be guaranteed for as many years as needed. Whole life insurance has a cash savings component with consistent premium payments. Part of the premiums go toward the cost of the insurance while the remainder contributes to the cash value. In addition, the cash value earns interest over the life of the policy.

Because traditional whole life policies are bundled life insurance policies with no transparency of insurance costs, administrative costs, or interest rate assumptions, they are not considered traditional investments.

Another thing to consider is the actual costs of insurance, which can and most likely will rise over time, which means the cash value of a policy will also change over time.

There is also your own financial situation to consider. There are some conditions in which a good life insurance policy will help stabilize your finances, while providing a secure resource for the future.

Simply put, every individual has a different situation and there is no such thing as a life insurance policy that makes sense to everyone, and every situation. To find out if this is something that you would be interested in finding out more about, speak to an agent and explore all the options.