Is Whole Life Insurance Profitable During Retirement?
Saying that a life insurance policy can bring money may sound a bit crazy. After all, it is expected to pay money for premiums, not to receive money. You will still continue to pay premiums, but you will also get some money if you choose the right policy. In this post we will explain why whole life insurance is profitable during retirement and why you should choose it.
Permanent policies are complex and have numerous features, plus, their efficiency can be extended by adding several life insurance riders. Compare now life insurance quotes and try to get the best whole life insurance rates!
Few people understand how to use whole life insurance as an income tool. Besides saving money, whole life insurance has an investment component. This component credits company dividends to cash value from the excess profit of the insurer. To make it simpler to understand: the insurer will invest a part of your money and if the investments are profitable, you will get a fair part of the profit.
Good insurance companies have their financial analysts and know in which products to invest. Whole life insurance also has a cash-build policy, allowing your saved money to grow with a limited interest rate. All the additional money is tax-deferred and even death benefit is tax-free. Now you get it why so many persons are interested in purchasing whole life insurance.
Now, let us explain how you can get the money. You can get the money through borrowing against policy. Typically, this feature becomes available after 5 or 10 years of payments.
It is not wise to withdraw too much money, since this will affect the cash value and death benefits. Wise clients also make sure to add a “sick benefits” rider. If the insured gets sick, the company will help paying the medical bills. These are the main methods in which you can get money from whole life insurance.
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