Whole Life Insurance
Whole life insurance policy is designed to stay in force for your entire life. As you pay each premium, you receive dividends and over the years the policy accrues value. In fact, once your policy reaches a certain value amount, you can borrow against it to pay for things like college or help you make premium payment to keep the policy in force. Your coverage can never be cancelled because your health changes.
Key Features and Benefits of Whole Life Insurance
#1 – SAFETY –
Whole life insurance has a guarantee cash value component with the possibility of additional growth. The cash value is built on the strength of the insurance carrier and financial integrity. This means that your money will always be safe from the highs and lows of the market, safeguarding your nest egg from risk.
#2 – CONTROL –
You specify the amount you want to put towards your life insurance, how often you would like to pay, when you want to gain control to the cash value…you are in the driver’s seat of your policy as opposed to a financial advisor acting as a mediator between you and your money and charging you for any change or transaction you make.
#3 – GROWTH –
Some will point to whole life’s “slow” growth of cash as a major reason not to purchase it. However, with whole life insurance, your cash value has contractual guarantees, and will experience continuous growth, uninterrupted by a bad year in the market in which you lose time and money otherwise compounding interest.
#4 – BUILDING A LEGACY –
Whole life offers a tax-free death benefit to beneficiaries of your choice, as do other forms of life insurance. With permanent insurance, you are not risking your coverage terminating at the end of a specified period or if market returns weren’t competitive one year.
#5 – LIQUIDITY –
As the policyowner, you can access your money at any time and, in most scenarios, without any penalty. This is very different from other financial products which can be complicated and costly to gain access.
The graphic above depicts these five features and how other monetary forms stack up. For example, while cash can check safety, control, and liquidity off – your options at building a legacy or competitive growth are limited.
Only whole life insurance can check off all these boxes, accomplish all these unique, and important, functions of your money.