Posted on March 24, 2010.
Life insurance? investment interest rates? How do people make money from life insurance? nobody knows of any interest rates, CDs, CBI or other investments
Q: How can you make money from life insurance?
A: You do not have money off of life insurance. Your beneficiary will make money if you die. Now, if your life insurance cash value, your life insurance to earn some interest, but not much because in the first two years, no cash value accumulated. Average interest rate on the cash value is between 0-3%. If you've always wanted to use the cash value, it must borrow. This cash value is a loan where you borrow and you must repay. If you do not and you die, your death benefit is reduced by the amount of money you have borrowed and the interest you owe. In all cases, people do make money from life insurance. They either die or they must borrow.
Q: Does anyone know of any high interest CDs, IRA or other investments?
A: CD historically earn interest only from 3 to 6%.
IRA is a retirement account to be funded by mutual funds, bonds, or a mixture of both. How it behaves is based on what you look for funds and how you invest your money. IRA is the best way to fund your retirement
Mutual funds have historically had an average return of anywhere between 5-14% over the past 25 years. All mutual funds are managed differently and have different objectify.
Real estate, historically, have an average yield of 5-8%.
I do not know what your investment goal is, but having an IRA is a great way to save for retirement. Its even better if you put money in every month because it decreases the cost per share over the long term.
life whole life, universal and variable steals your cash value when you die. And if you want to use it, you need to borrow and owe interest 5-8% on it!
Buy term and invest the difference in the Traditional / Roth IRA, both tax-free deferred and increase their rate of return on the dollar Flag
Life insurance is not an investment. In most states (United States), it is illegal to say that it is an investment.
If you are a U.S. citizen here are some banks with high savings rates and CD provided;
www.GMACBank.com
www.HSBCDirect.com
www.INGDirect.com
On life insurance can be used to leave your heirs tax free money. Or, you can pay high premiums in a life policy that will give you a good return if you decide to cash for many years. Depends on what your goals are. If you are looking for a higher interest rate than banks and, as the security not to be on the stock market, then consider the fixed annuity. This is a savings, with co insurance instead of a bank. The rate is usually higher than banks can offer, but avoids probate, such as life insurance. The company I work for offers right now 7%.
