Life insurance creates cash at death. That being said the cash value that builds up in a whole life policy with dividends cannot be ignored.
Some whole life policies are touted as being investment grade because the based on current long term projections the internal rate of return is in the 4% range for the total cash value. That reflects well on the balance sheet as a fixed income investment replacement.
Whole life policies are valuable financial instruments in financial and retirement planning. However, the growing death benefit is where the policy shines, providing estate planning solutions.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.
President, Lane Independent Agency, Southern California
Whole life insurance is permanent insurance. It retains the same premium throughout your lifetime. It also builds equity. It is generally not considered an investment but a financial tool. However, the truth is that by building equity, it clearly also is a type of investment. You can borrow against it, and actually never pay it back, and keep the money tax free. You can use the money for retirement, or to buy a home. But buying life insurance should primarily be to protect your family and those you love! Thank you. GARY LANE.
That is a great question! Technically speaking, no it is not. Agents are generally cautioned against using the word investment in any of their presentations, so as to not mislead potential clients. A life insurance policy does not generate the returns for you that a money market fund, mutual fund, or stock market investment would. An insurance policy will pay off what the face value is, when you pass, and as such is not usable by you. There are policies called "universal, or indexed universal" life policies that promise large cash value gains, but even so, they are not to be seen as investments, when you read all of the fine print, and conditions needed to produce the promised gains. That said, it is an important and needed part of almost everyone's financial security , and it provides a great sense of relief, knowing that you've provided for your loved ones. That you can consider a worthy investment. If you would like more detailed information on the financial differences, please contact me, okay? Thank you for asking!
.JPG){kind=avatar}
Some whole life policies are touted as being investment grade because the based on current long term projections the internal rate of return is in the 4% range for the total cash value. That reflects well on the balance sheet as a fixed income investment replacement.
Whole life policies are valuable financial instruments in financial and retirement planning. However, the growing death benefit is where the policy shines, providing estate planning solutions.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.