Whole life insurance, good investment or low quality alternative to investing? A whole life policy is an investment that will mature and grow. It is a simple personal investment that can help you with your financial portfolio.
You have two payment options when it comes to whole life, pay through age 100, or pay larger payments in a short time. If you have a good income at a young age, this is a great option. It is especially useful if you know you will have a limited income when you reach retirement age, and you may need to take loans from it or use it.
Keeping in mind that you are investing for your future will help you when you compare whole life rates. When your equity builds you have an asset that you can also take loans out from.
In the case of early demise of someone that provides for others, whole life is an investment that will pay more than others. This is an important consideration, but not the only reason to own a whole life policy. You will not just be focusing on the investment as money for others when you pass away, but also as money that you can use if you need it.
Retirement planning options do not usually include looking at whole life policies because most people only think of it as money you will leave behind for others. When people are paying bills, they tend to forget they will need money when they are no longer able to work, or do not want to work. When comparing savings accounts to paying a policy, it is much easier to save because you really have to think before taking money from your whole life policy.
If you need to borrow, because whole life is something you invest in that matures, you can take a loan out against the cash value. You are using money that is yours, so you are not paying someone else interest, and do not have to pay it back. Because emergencies do happen, sometimes it is worth it to have this option even though it lowers your investment value.
Some of the most compelling reasons to invest in a whole life policy are:
Your rate remains consistent
If you need a loan you can pay yourself back
Your investment grows in value
Cash value is available throughout your life, policy finishes maturing at 100
Beneficiaries may receive tax benefits because of the investment
Investments are everywhere. Knowing who to answer the question, "whole life insurance-good investment" may be the key to a worry free investment. Your whole life policy will help those you leave behind and help you throughout your life. Reviewing all of what is available and making an informed choice will be the best way to success in your money management.