https://sites.google.com/site/healthinsurancedallastx What is the usefulness of a whole life insurance investment versus a time life policy? Usually comparisons are made without a full understanding of the value of these two very different products.. While term life and whole life policies are both life insurance products at heart they are very different and need to be bought for very different reasons. How is a whole life policy set up? It's not hard to set out what a whole life insurance investment is. It is a life product with set premiums that will pay the face value ( the agreed amount of the death benefit) at the time of the policy holder's death. It also has what is called an 'investment' component. Premiums exceed the cost of covering the death benefit and the difference is credited to a cash value account which is then invested on your behalf by the insurers. Whole life insurance investment has other features apart from delivering cash value in addition to the death benefit your heirs received. As there is an accruing cash value to the policy, as the policy holder you can borrow against your policy. Or you can draw down an amount you need to cover a specific expense at some time during the life of the policy. What is the hidden benefit in whole life policies In theory a whole life policy investment will deliver a death benefit and cash value to your heirs. However it does more than this. One of the benefits of life insurance is that it is tax free money. Given that whole life policy investment is tax free, this allows you, with the help of your financial advisers and legal counsel to structure a portfolio, of which a whole life policy is a part to achieve a number of financial goals. You can use your whole life policy as a form of asset protection or to ensure a smoother process of succession planning in relation to a business asset owned by your family. You can also use this form of insurance to minimize you tax obligations and also to ensure you have disability protection during your lifetime. A whole life policy investment is not really an 'investment' The multiple purposes of whole life insurance investment derives from its character as a savings asset rather than an investment asset. The naming of the cash value part of these policies as an 'investment' is not altogether accurate. Sure these monies are 'invested' but this money is not at risk in the same way as a normal speculative investment is. It's not hard to distinguish between what a savings asset is compared with an investment asset. A savings asset is like a bank account into which you put savings. An investment asset is when you put money into stocks with the expectation the value of those stocks will increase. A whole life insurance Policy is a savings asset because it is designed to provide savings which can be used in a variety of ways, one of which is protecting other assets in your estate.

https://sites.google.com/site/healthinsurancedallastx How much can you spend on premiums right now? If there is to be an argument about term life insurance versus whole life insurance then it should not be over whether you would be better off taking out term insurance and 'investing' the difference between the two sets of premiums. Investing money on the stock exchange is not the same as investing in a whole life policy. Your consideration of these forms of life policies should be about how much you can afford to spend on premiums now. If what you need is a life policy while you are raising a young family then you should take out term because it covers your family if something happens to you. If however you want to set up a long term financial plan you would be well advised to use a whole life insurance investment as part of those plans because of it's capacity to protect a broad range of your assets. Get a quote on a policy from a reputable insurance company and that will aid in your decision making process. Affordable Health Insurance Phone: 855-745-5422 Email: [email protected] Website: ​https://keyhealthplans.com Google Site: ​https://sites.google.com/site/healthinsurancedallastx Twitter: ​https://twitter.com/Key_HealthPlans Facebook: ​https://www.facebook.com/KeyHealthPlans/

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