Whole Life Insurance stretches the cost of insurance out over a longer period of time in order to level out the otherwise increasing cost of insurance. In this case, however, it is spread not over a few years but over your entire life. Your excess premium dollars are invested by the company. Because you aren’t personally managing that investment, your selection of an insurance company is vitally important. Be certain to learn about Infinite Banking Concepts under the Retirement Planning tab utilizing permanent insurance.
Universal Life Insurance, offers greater flexibility than Whole or Term Life. After your initial payment, you can reduce or increase the amount of your death benefit (although to increase the amount, you’ll probably have to give the insurance company medical proof that you are still in good health). Also, after your initial payment, you can pay premiums any time, in almost any amount, within the policy’s required minimums and maximums. You will need to actively manage these policies to maintain sufficient funding. Plus, part of your premium is invested by the insurance company, so you’ll need to be careful when choosing a company.
Advantages of Whole Life insurance.
- To have permanent, lifetime death benefit protection as long as you live to protect your family
- To lock in a fixed premium payment. .
- Guaranteed cash values
- Loan privileges
- To help pay off your mortgage.
- To help pay off your debts.
- To provide educational funds for college.
- To take care of loved ones.
- To protect your business.
- To build for your retirement.
- To provide cash for emergencies.
Advantages of universal life insurance.
- Flexible premium payments.
- Adjustable death benefits.
- Cash values credited with interest at a rate declared by the insurance carrier.
- Interest accumulates tax deferred under current tax laws.
- Withdrawal or loan privileges.