Considering the fact that economies change, it doesn’t actually help if you keep your money in the bank. Saving for the future has its advantages, but then again, interest rates change and an increasing rate of inflation can totally wipe out your hard-earned money in just one go. Other than that, there’s also the risk of death or debilitating injury which can put your financial future in jeopardy.
For this reason, people should rather invest their money in options that allow for better growth, on top of protecting your lifestyle and your health.
So what’s the best way to utilize your savings? There are a plethora of investment options to consider, such as rental spaces and stocks. But if you’re seeking to secure your life and the future of your family from any eventuality, you might as well invest in a whole life insurance product that best fits your needs.
Whole life insurance is basically a type of insurance that allows your beneficiaries (that is, your family) to access an accumulated amount of cash once you pass away. Unlike most life insurance products, a whole life insurance policy does not have a maturity date. This allows you to pay your premiums for as long as you like. But now that we have touched on what whole life insurance is, what’s so special about it that you should consider getting such a policy?
Here are the reasons why you should get a whole life insurance product.
1. Cumulative cash value
Since you are allowed to pay your premiums however you like, you are able to build cash value at a fixed rate. This means that the value of your policy is guaranteed to grow at that rate regardless of how the economy’s faring. So, even if stock prices are in the red, you are still guaranteed hefty returns which you can withdraw.
2. Tax advantages
Another reason why you should invest in a whole life insurance policy is that it’s not subject to taxes, so long as you don’t withdraw beyond a certain threshold. Other than that, the cash value of your policy enjoys considerable protection from creditors. This means you can freely use the funds whichever way you like without any added restrictions.
3. Passive income
Probably the best benefit that a whole life insurance policy can grant you is the fact that may be paid dividends from the funds you have accumulated. Depending on your insurance provider, you may or may not receive dividends. But if your policy has such a provision, you can use the funds to purchase additional policies or invest in other options. That said, be sure to find A rated providers offering whole life arrangements with a payout feature.
4. Access to cash at any time
Other investments have strict rules when it comes to withdrawing and reinvesting the money you accumulated. This is not the case with whole life insurance, which allows you complete freedom to use your money for any purpose. Although you still need to make interest payments, the good thing is that you have a ready source of funds you can use at any given time.
(Featured image by Solis Images via Shutterstock)
UN calls for the cancellation of $236 billion in African debt
In response to the pandemic and the economic "tsunami" affecting developing countries, The United Nations Conference on Trade and Development...
A sharp drop in Italy’s GDP can no longer be avoided
Confindustria’s forecasts showed that a sharp drop in Italy’s gross domestic product (GDP) is now inevitable. The estimates are based...
Genfit is adapting its activities in accordance to the coronavirus pandemic
Biotech companies worldwide are trying to find a vaccine to halt the coronavirus pandemic. The French Group Genfit announced that...
Blockchain technology can help the energy industry be more efficient
BlockApps has entered into a partnership agreement with the consulting firm Optimum to develop block solutions for tracking how energy...
Cannabis oversupply prompts stores to offer huge discounts
The surplus on the Oregon cannabis market is so high that existing stocks may last up to 6,5 years. As...
- Featured6 days ago
Why should banks and FinTech operators ally?
- Featured7 days ago
Finaktiva guarantees 23 billion pesos for SMEs through FNG
- Crowdfunding7 days ago
Is now the right moment to launch a crowdfunding campaign?
- Crowdfunding6 days ago
Several organizations accept donations in cryptocurrencies to fight the pandemic