4 Ways to Protect Stock Investments with Life Insurance
How to protect your investment with life insurance - You who have investments in stocks of course have experienced tension when the index decreased. Losses on the portfolio seem to be looming in front of the eye.
The ups and downs of stock prices on the stock are actually common. The problem becomes more severe when the stock is experiencing a recession or "bearish" in the long run.
In times of recession, many people lose large portions of their portfolios and, unfortunately, some do not live long enough to cover all the losses that have occurred.
However, fortunately not all is doom and gloom, there is light at the end of the tunnel.
Life insurance can protect your portfolio in good times or bad, so you can stay relaxed when viewing news on the stock market.
Here's how life insurance protects your stock portfolio:
1) In an emergency portfolio, use life insurance
Some of us may choose stock as an investment instrument. Depending on how much money is invested and how the portfolio diversification technique, you may have a large amount of money connected to the capital market.
So what happens if the market is collapsing? The cash value of a life insurance policy can provide additional security in case of a stock market erodes your portfolio.
The cash value and protection level of the policy can generally be adjusted as needed.
2) Financing sudden expenses
Let's assume your portfolio is still in safe condition. But keep in mind, assets in the form of stocks are usually not too liquid because the selling price may not be right.
What happens if you are suddenly in great demand?
Liquidating assets may take time, time that you may not have in an emergency.
A permanent life insurance policy allows you to withdraw some of the funds available or take out a loan against a policy fund, so you do not have to sell stocks prematurely.
3) Protect assets for heirs
The stock portfolio is not just yours. You may have planned to someday pass it on.
That's because, when stock values suddenly shrink due to a recession, this fact can be very painful.
If you want to pass assets to heirs, you can do so with an insurance policy. No matter how the market fluctuates, your inheritance will persist.
4) Reserve for investment penchant
Some people not only have a portfolio in the stock market, they may also invest elsewhere like in the forex market.
The market can be unforgiving, especially for short-term investors. That's because, people with this type may want to hedge using life insurance.
You may not have control over market volatility; but you can give your portfolio additional protection using life insurance.
