Do you still belong to the people, who think that life insurance is something you never benefit from, because it only pays money once you die? Then the following information about Old vs New Life Insurance is a must read for you!
When you ask some what is life insurance, most people will answer, “It is an insurance that pays money when you die.” Right after that you will most likely hear how it is useless, or maybe a too expensive luxury that the person can’t afford. Well, they are partially right. The basic premise of life insurance is the death benefit, absolutely. However…
New Life Insurance
The life insurance industry is evolving just like any other area of business and finance. And since it is one of the most regulated industries, it is also one of the safest places to keep your money for retirement. In fact, top insurance companies have such great surpluses, that even if all of their clients died in a single day, and you were the only one left, they’d still have more than plenty to pay out the cash value of your whole life policy.
Life insurance today can grow your money with tax deferred interest for example. It can also use this interest to increase your death benefit, again tax deferred. This means you pay into your policy, the money collects interest, the interest goes back into your policy without having to pay an income tax and again this accrued interest collects more tax deferred interest.
Your money can also be always accessible to you in the form of a loan. You pay a reasonable interest on that loan, but your policy is collecting interest for the entire amount. Kind of like a savings account that you can tap into at any time and borrow from your tax deferred fund without having to pay an income tax on the money, since it is a loan.
These are just a few advantages of a life insurance policy “fund”. Give us a call and lets discuss many of the other features of these new policies. Even if you already had one for years, let’s get together for a free review and let’s see if your policy can be updated.