Whole Life Insurance

-

Whole Life Insurance

Whole life insurance, also referred to as ordinary life insurance, has a storied history and offers some amazing benefits. Unfortunately, it has received a bad rap over the last two decades primarily due to some misunderstandings or outright “half-truths” told by so called financial experts, who would rather you stick your money into mutual funds.

The common mantra of buy term and invest the rest originated with the founder of Primerica, who used this slogan to become the #1 seller of life insurance. But one trend to consider is that more than ever people are retiring with little to no savings. Whole life insurance acts as a forced savings account. Perhaps this advice has caused more harm than good?

And while it may be a good idea for some to buy cheap term life insurance, whole life insurance is an awesome way to diversify and provide some fantastic guarantees not found with other investment vehicles. The product is non-correlated, which means it does not follow the stock market. Rather, it is a safe place to store money that can provide needed liquidity when cash is tight.

Also, you should consider whole life insurance for children. Particularly as opposed to college savings plans, such as the 529 Plan.

Whole life insurance offers three primary guarantees that sets it apart in the world of permanent life insurance.

Guaranteed death benefit

The policy’s death benefit is guaranteed as long as premiums are maintained.

Guaranteed fixed premiums

Whole life premiums are fixed for the duration of the policy.

Guaranteed cash value growth

The cash value in your policy is guaranteed to grow over the life of the policy at a guaranteed rate. Currently that rate averages out at around 4% over the long term. However, your return can be higher if your policy also receives dividends.

Whole life insurance dividends

Another benefit of whole life insurance is the dividend paid to participating policyholders. The dividend on many top whole life insurance companies ranges currently between 5-6.5%. Although dividends are not guaranteed, most whole life insurance from mutual companies have offered dividends consistently over the last 100+ years, even during the Great Depression.

Benefits of Whole Life Dividends

You can use the dividends to:

Purchase additional paid up life insurance Leave with the carrier and earn interest Pay premium payments Repay policy loansCash out.

Comments

Post a Comment

Popular posts from this blog

Comparison between different types of Insurance Policies

-
Image
Comparison between different types of Insurance Policies: Life Insurance: This insurance provides a monetary benefit to a decedent's family or other designated beneficiary, and may specifically provide for income to an insured person's family, burial, funeral and other final expenses. These policies pay the proceeds to the beneficiary either in lump or in an annuity form. Generally, a person cannot purchase a policy on another person without their knowledge. Property Insurance: As the name suggests, the property insurance provides protection against the risks to property such as the fire, theft or weather damage. The special types of Property Insurance are flood insurance, earthquake insurance, home insurance, inland marine insurance or boiler insurance. In societies there are many types of property insurance, among which some are: Builder's risk InsuranceCrop InsuranceEarthquake InsuranceFlood InsuranceHome Insurance Etc. Health Insurance: These insurance policies ...
Read more

English is a West Germanic language

-
English is a West Germanic language that was first spoken in early medieval England and is now a global lingua franca. Named after the Angles, one of the Germanic tribes that migrated to the area of Britain that would later take their name, England, both names ultimately deriving from the Anglia peninsula in the Baltic Sea. It is closely related to the Frisian languages, but its vocabulary has been significantly influenced by other Germanic languages, particularly Norse (a North Germanic language), as well as by Latin and French English has developed over the course of more than 1,400 years. The earliest forms of English, a set of Anglo-Frisian dialects brought to Great Britain by Anglo-Saxon settlers in the 5th century, are called Old English. Middle English began in the late 11th century with the Norman conquest of England and was a period in which the language was influenced by French.Early Modern English began in the late 15th century with the introduction of the printing press to...
Read more

Teaching To Kids’ Learning Styles

-
Teaching To Kids’ Learning Styles There are currently seven “Learning Styles“: Visual (spatial): You prefer using pictures, images, and spatial understanding. Aural (auditory-musical): You prefer using sound and music. Verbal (linguistic): You prefer using words, both in speech and writing. Physical (kinesthetic): You prefer using your body, hands and sense of touch. Logical (mathematical): You prefer using logic, reasoning and systems. Social (interpersonal): You prefer to learn in groups or with other people. Solitary (intrapersonal): You prefer to work alone and use self-study. Your student will most likely not possess one style exclusively but you may be able to see patterns in their learning preferences. For example, a student who is visual may also be a very social and verbal learner and prefers to learn especially difficult topics using their primary skills. Understanding how your student ...
Read more