Whole life insurance policy Is this a good investment
ByWhole life insurance policy Read this and quickly learn exactly what whole life insurance policy is and decide if it is right for you and your family.
What is whole life insurance?
This type of policy covers your entire life not just a specific term like term life insurance does. Your death benefit and premium will remain the same throughout your whole life and it does cash value, which will return a portion of your premiums plus interest.
The cash value is tax-deferred until you withdraw and you can wait until your retirement years to use the money or he can use as collateral for a loan.
There are different choices within whole life insurance.
The most popular is the traditional interest sensitive type of whole life policy or a portion of your premium is used to pay for the insurance and the other portion of the premium is used as an investment.
There is also single premium whole life in which someone puts down a large sum of money and has life insurance for the rest of their lives plus accrue interest on the money.
The benefit of choosing whole life insurance is that if you die your family will receive a death benefit and if you live the premiums will have accrued cash value, which belongs to you.
Another benefit to this insurance is that you are insured for the rest of your life.
Is this a good investment?
The truth of the matter is the rate of return whole life insurance policy is very low compared to other investments. Many people will tell you do not buy life insurance as an investment.
Jimmy says use term life insurance to protect your family because it costs less money and then invest the rest of the money yourself in mutual funds and real estate.
Whoa Jimmy?
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is term life insurance a good product
Whole life insurance policy does have its advantages and benefits and if you have any ideas in this area please share with our readers in the comments.
