If you are not an insurance guru, the world of insurance can be quite confusing. This is among the many reasons why people do not take insurance cover. If you are shopping around for life insurance, you will find that there are two types of life insurance;
1. Term life insurance – the insurer pays premiums for a specific number of years maybe for 25 or 30 years. If they die during this term, their survivors get the benefit. However, just like car insurance, if you stop paying your premiums you lose your cover.
2. Whole or permanent life insurance – with whole life insurance there is no specified term. You get to keep your insurance as long as you keep paying the premiums. Also the premium value paid is fixed for life.
You must be wondering why you should take whole life insurance. Here is a list of various reasons to consider whole life insurance cover.
Guaranteed growth of your money each year
Your money will be earning an interest every year. The rate of interest is based on the economy there it will be fluctuating. Unlike in mutual funds where you get an average rate of return, with whole life insurance you get compounded tax free growth. If you like guarantees and stability,
then whole life insurance is the best option for you.
Access to your cash any time at any age for any reason
This is one of the main benefits of whole life insurance. If you wish to access your cash before you retire you can access it without any obstacle. Unlike other funds that will penalize you if you do not pay back the borrowed amount by a specific date and with an interest, whole life insurance policy there are no penalties. If you wish you can leave the cash in the policy or you can borrow it whenever you wish without an obstacle.
After purchasing the policy, cover is guaranteed for the rest of your life. Some people assume that they can purchase a new policy whenever they wish but that’s not the truth especially for people diagnosed with chronic diseases. At your own will you add an accelerated death benefit rider for a small amount. By doing so, you have access to a large portion of the money if you have a chronic illness.
Even if there are so many other benefits with whole life policy, you must not forget it us a life insurance policy. After you die, your beneficiaries will receive a sum of money tax free.
Whole life insurance is just one way of protecting your wealth. It is one of the tools used by family dynasties to protect their wealth. Death payouts from life insurance policies taken by the diseased, goes promotes tax free inter-generational transfer of wealth.
If you are looking for the right policy for you, work with the experts, Aines Carter & Associates. We have plenty of experience and we will tailor a policy that is just fit for you. Contact us today and take charge of your finances.