For the definition of Whole Life Insurance we take a look at the definition by Wikipedia, “is a life insurance policy which is guaranteed to remain in force for the insured’s entire lifetime, provided required premiums are paid, or to the maturity date.”
Descriptive, but again too simple. Essentially Whole Life Policy is a retirement savings account with a death benefit should you pass away before its maturity. When you pay into social security, the government promises to pay you a pension upon attaining retirement age. However, if you should pass away earlier, your loved ones are more than likely going to get nothing or very little.
Best life insurance products
Whole Life Policies are the best life insurance products. They have a fixed target value and tend to get a little pricey with increasing age. You pay a certain amount each month, or a year until a certain age or value. Best payment cycle with the lowest fees is of course a yearly payment. It reduces administration costs and more of your money starts collecting interest right away.
Whole Life Insurance is an excellent product compared to investment portfolios. Reason for this is that a Whole Life Policy creates a retirement fund for you instantly in the form of a death benefit. This benefit helps to protect your assets and your loved ones instantly. Whole Life Insurance is the most expensive product among insurances, and the longer you have the policy, the better. The cash value does not show up in your statements for about the first three years. Don’t expect to have your money (any cash) available to you right away. We are talking about long term financial planning here, not a get rich quick scheme.
Savings through Whole Life Insurance
Among the great benefits of Whole Life Insurance is that you can be use it to save money on taxes and bank fees. With the number of options, products and riders, it is best to have a personal consultation and discuss which policy or rider are best suited for your specific needs. Give us a call or drop us a line.