term life insurance So my agent courted me; trying to convince me that whole life was a smart financial move. I’m not one to throw money away and I term life insurance generally make sound decisions, so it was quite a long process to get me to 1) understand everything about whole life insurance and 2) convince me that it was a good investment term life insurance.
term life insurance After a few months of reluctantly meeting with my agent and exchanging dozens of emails, printouts, projections and other details vetting the product, I finally felt comfortable enough to invest term life insurance
term life insurance If you invest into whole life insurance, you pay a premium every year – your premium (and whether you are even qualified) is determined by your age and health. Your premium minus fees are placed into a cash value account term life insurance
term life insurance How much you can make from your whole life policy depends on your premium amount and the amount of value in your account. As long as you have money in the product, you’re guaranteed an annual dividend that grows tax-deferred as long as there’s cash in the account.
term life insurance So, whole life insurance is very much like buying common stock from a company that pays out dividends… but without the fluctuations and risks of the stock market and company performance.
Does Whole Life Insurance Make Sense for You?
If you’re risk-adverse and have money hanging around then it’s a consideration.
Of course, you can make more money on stocks and mutual funds, but you can also lose all of your money too. Remember, whole life insurance has a locked-in rate of return (fluctuates from year to year).
term life insurance Consider other “tax-advantaged plans” before putting your money into Whole Life Insurance says The Washington Post:
The policies can make sense for people who need insurance and have maxed out contributions to 401(k)s and other tax-advantaged plans, advisers say.
term life insurance And consider whether you can keep up with the premiums as they’re not cheap. We’re not talking $500 a year, but more like $5,000 (or more) a year. Once you’re locked into your premium, you must be able to keep up the payments. If you can, you’ll have yourself a nice savings account after a few years.
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