You’ve probably heard of the many types of life insurance that exist. Whole Life Insurance, Term Life Insurance, Universal Life Insurance, Variable Universal Life Insurance – the list goes on. With all the noise and misinformation out there on insurance in general, what kind of life insurance policy to choose can be confusing. Understanding what whole life insurance is all about will help make the decision easier.
You have also probably read things like “whole life is a ripoff” or, if you follow Dave Ramsey’s blog, you know that he is not a fan. Well, Dave, we could not disagree more.
So what is whole life insurance anyway? Investopedia defines whole life as insurance that provides coverage for the insured’s life, which also contains a savings component in which cash value may accumulate. According to the Insurance Information Institute, it is the most common type of permanent life insurance policy that people purchase.
How Whole Life Insurance Works
A 100 Year Real Estate Investor policy pays a guaranteed amount upon death. It includes a tax-advantaged savings element that accumulates in cash value during the insured person’s lifetime. What this means is that a portion of the premium paid for the policy is accessible during the insured’s lifetime and has the potential to earn dividends, which both grow over time. It is a single premium whole life policy, meaning you write only one check to fund your policy altogether. No additional payments are required.
The Benefits of Whole Life Insurance
It’s essential to look at the benefits of a whole life policy over time. We believe whole life is right for those who like long-term predictability, but who wouldn’t? The benefits include tax-deferred growth, the opportunity to earn dividends, and the ability to borrow against your cash for any reason while continuing to grow it as if you never touched it.
The Best Life Insurance Companies
We recommend purchasing your policy from a mutually owned company that pays dividends. (Dividends are never guaranteed, but our companies have paid dividends every year for over 160 years). The 100 Year Real Estate Investor only works with financially stable companies with high credit ratings and who practice non-direct recognition.
So what are the Pros and Cons?
The decision for you is whether the return and advantages of a whole life policy are sufficient compared to other uses of that same money, such as a 401k, certificate of deposit (CD), or traditional savings account. We can dive into exactly what your numbers, so that you are able to make an informed decision on what is right for your financial future.
Do you probably want to know how much is whole life insurance? Well, that’s only something you will understand after speaking to a 100 Year REI Team Member. Still, need to be convinced? We’d love to show you the numbers you’re missing out on. Click here to schedule a call and get set up with an affordable whole life insurance plan today.
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The 100 Year REI Team is ready to help you create a financial strategy that will allow you to simplify your real estate investment business immediately. Schedule a free, no-obligation consultation with us today.