The Truth about Whole Life Insurance with Cash Value
Whole life Insurance Definition
If you need life insurance (which in order to find out, you must ask yourself one question: am I going to die ?)
A Whole Life Insurance policy is a non-risky , non-volatile way of earning a high rate of return with a very conservative risk portfolio.
A whole life policy is part of a healthy financial portfolio.
It grows with preferential tax treatment and pays tax free to your beneficiary or estate.
In nearly every case of par Whole life if you are under 50 you will have a cash surrender value equal to 100% and up to 800% of the premiums paid.
Should I buy Whole Life Insurance
Whole life insurance isn’t a product designed to replace term insurance.
Whole life insurance has to be used with the intent of using it as collateral for loans, enhanced retirement and for leaving a legacy.
In the early years it should be set up with a term rider to ensure a family’s needs will be met.
Yes this is more expensive but it is a tool with an objective and if that’s not the objective then whole life makes no sense at all.
It is not right for everyone.
Whole Life Insurance Cash Value Loan
The ACB of a policy only comes into play on a policy loan.
If the policy is collateralized then up to 90% of the CSV can be accessed as a line of credit, while your csv in the policy continues to grow sheltered from taxes.
Also, during your life if the policy pays 4% and you take a loan against the policy (for any reason) the net effect is that you are paying yourself the 4%, and perhaps 1 or 2% to the insurance company.
CSV collateral loans typically are cheaper than unsecured loans, or auto loans.
Used properly the whole life insurance contract is one of the most versatile wealth building tools.
The real Truth about Whole Life Insurance with Cash Value
INSURANCE COMPANIES DO NOT TAKE FROM THE CASH VALUE.
IN 20 YEARS WE HAVE BEEN IN THE BUSINESS EVER SEE A CASH VALUE GO DOWN.
It goes up.
And you can count on it.
It has to be the most valuable , and reliable form of insurance that ever existed and lucky for us in USA the insurance companies are tightly monitored and re-insured .
It’s as safe as investing gets.
If you need an illustration, contact us for financial statements and records.
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