People buy whole life for a variety of reasons. Just a few of the reasons to buy whole life are:
1) You want to be sure that your policy is in effect at the time of your death, even if you live to a ripe old age;
2) you want a life insurance policy that will have cash value that you can borrow from; and/or
3) you want to pay off your policy in a set number of years.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
Mortality in the United States stubbornly remains at 100%. If you want to purchase a life insurance policy in anticipation of receiving a death benefit, then a permanent policy is your sole option. All other policies have a termination date. I am using the term “permanent” because it includes other policies that share these features with a whole life policy.
Death is not the only opportunity for receiving benefits from a permanent life insurance policy. Throughout the existence of the policy you have access to the cash value of the policy. You can either withdraw money or take a policy loan.
A policy loan does not require an application and can be taken in total privacy. These loans have assisted business owners through stressful period of time, by providing capital to keep the business afloat.
Business owners often use permanent life insurance to make sure that funds are available for surviving partners to purchase the interest of a deceased partner in a business. They also use permanent life insurance in compensation packages.
Some people use their permanent life insurance policy in their estate plan to pay taxes and to make sure heirs receive equal treatment. It is an excellent way to give a gift to a university or religious organization.
The systematic nature of deposits in a permanent life insurance policy has enabled some people to develop significant wealth. It certainly can form the stable component of an overall financial strategy. The return in a permanent life insurance policy is competitive with other high-quality, fixed return assets and can provide tax free distributions as well as income tax free death benefits.
Financial planning is about shifting assets. The most important shift is from current consumption to future consumption. You can make a choice between a low-fat caramel macchiato and money in your future. While certain coffee franchise would take offense that is really be beginning of the process. How much are you willing to invest in your future? Because of its “semi-compulsory” nature, a permanent life insurance policy is a great place to start.
I haven’t met anyone yet who honestly told me that they have too much permanent life insurance. Usually they are lamenting the escalating cost of their term life insurance. Today a significant amount of life insurance is purchased by people over age 60. Can you imagine how they would have preferred to have made that purchase thirty years ago for the cost of a stop at the coffee shop?
Whole life insurance is the fully guaranteed permanent life insurance product. It is the basic policy from which all other forms of life insurance have been developed. Some will hold that whole life insurance is too expensive. However, if you are looking for a lifetime of coverage you will find it is very inexpensive unless you are wildly successful investor. If you look at the sum of premiums alone you will find that by life expectancy that term life insurance will have cost a significantly greater amount of money than the whole life.
There are many reasons to purchase a whole life policy. The first reason is the first intended purpose of a whole life policy is if you feel you want to leave money to loved ones at any age then whole life is for you. It is a life insurance policy designed to last your entire or whole life. Also, whole life is the Swiss Army knife of life insurance policies. It's funds can be used for retirement, children's college, critical illness and much more.
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1) You want to be sure that your policy is in effect at the time of your death, even if you live to a ripe old age;
2) you want a life insurance policy that will have cash value that you can borrow from; and/or
3) you want to pay off your policy in a set number of years.
Death is not the only opportunity for receiving benefits from a permanent life insurance policy. Throughout the existence of the policy you have access to the cash value of the policy. You can either withdraw money or take a policy loan.
A policy loan does not require an application and can be taken in total privacy. These loans have assisted business owners through stressful period of time, by providing capital to keep the business afloat.
Business owners often use permanent life insurance to make sure that funds are available for surviving partners to purchase the interest of a deceased partner in a business. They also use permanent life insurance in compensation packages.
Some people use their permanent life insurance policy in their estate plan to pay taxes and to make sure heirs receive equal treatment. It is an excellent way to give a gift to a university or religious organization.
The systematic nature of deposits in a permanent life insurance policy has enabled some people to develop significant wealth. It certainly can form the stable component of an overall financial strategy. The return in a permanent life insurance policy is competitive with other high-quality, fixed return assets and can provide tax free distributions as well as income tax free death benefits.
Financial planning is about shifting assets. The most important shift is from current consumption to future consumption. You can make a choice between a low-fat caramel macchiato and money in your future. While certain coffee franchise would take offense that is really be beginning of the process. How much are you willing to invest in your future? Because of its “semi-compulsory” nature, a permanent life insurance policy is a great place to start.
I haven’t met anyone yet who honestly told me that they have too much permanent life insurance. Usually they are lamenting the escalating cost of their term life insurance. Today a significant amount of life insurance is purchased by people over age 60. Can you imagine how they would have preferred to have made that purchase thirty years ago for the cost of a stop at the coffee shop?
Whole life insurance is the fully guaranteed permanent life insurance product. It is the basic policy from which all other forms of life insurance have been developed. Some will hold that whole life insurance is too expensive. However, if you are looking for a lifetime of coverage you will find it is very inexpensive unless you are wildly successful investor. If you look at the sum of premiums alone you will find that by life expectancy that term life insurance will have cost a significantly greater amount of money than the whole life.