On the surface, whole life insurance offers long-term security, affordability, and flexibility features and structure. However, by understanding the premiums behind whole life insurance policies, you are provided with a much clearer view of how whole life insurance has continued to be such a popular life insurance plan.
A Quick Look at Whole Life Policies
At its core, whole life insurance guarantees lifetime protection to the policyholder that can never be removed, at a premium that never increases. Unfortunately, this comes at the expense of higher premiums to offset the insurance company’s risk. Ultimately, you will have an excess in funds that begin to accumulate with time.
Many insurance companies offer whole life plans that participate in their profits. Essentially, whenever the life insurance company outperforms its assumptions with better returns, it divides part of the profit portions to policyholders. However, it is essential to note that dividends are not guaranteed, although the most stable companies are known to pay dividends faithfully.
The End Result
When a whole life insurance policy is appropriately managed, it can generate a cash value growth with enough time that ultimately foregoes the need to pay any premium payments. Essentially, the policyholder ends up with a life insurance policy that pays for itself with dividends while enjoying the continued lifetime protection it offers.
Contact Information:
Email: [email protected]
Phone: 7705402211
Bio:
Mack Hales has spent the past 4 decades helping clients prepare for retirement and manage their finances successfully. He also works with strategies that help clients put away much more money for their retirement than they could in an IRA or even a 401k. We involve the client’s CPA and/or their tax attorney to be sure the programs meet the proper tax codes.
Mack works with Federal Employees to help them establish the right path before and after retirement. The goal is to help the client retire worry-free with as much tax-free income as possible and no worries about money at risk of market loss during retirement.
Mack has resided in Gainesville, GA since 1983, so this is considered home. Mack is married to his wife of 51 years, has two boys and five grandchildren.
Disclosure:
Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice has been filed, or is excluded from notice filing requirements. This information is not a complete analysis of the topic(s) discussed, is general in nature, and is not personalized investment advice. Nothing in this article is intended to be investment advice. There are risks involved with investing which may include (but are not limited to) market fluctuations and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making any investment decision. You should consult a professional tax or investment advisor regarding tax and investment implications before taking any investment actions or implementing any investment strategies.
