There is a lot of talk circulating in the financial world about permanent life insurance, and to be honest, there should be. Whole Life Insurance is such an overlooked and sorely misunderstood financial product, that when conversations arise about the insurance – good or bad – I take the opportunity to clear up some misconceptions and discuss the truth about Whole Life.
Most of the time, when individuals say they dislike permanent insurance, their reasons are limited to just two words – ‘unnecessary’ and ‘expensive’. To be fair, if there is a lack of understanding about the uses and benefits of Whole Life, then I could see why a person would say that. However, properly structured Whole Life Insurance offers so many living benefits and financial security, that descriptions about the product like ‘expensive’ and ‘unnecessary’ become unfounded. When an individual buys Whole Life Insurance that is properly structured and used, typically they describe it to be, ‘valuable’ and ‘necessary’.
Here are a few reasons why I think buying Whole Life Insurance is a good idea, and why I choose to pay money into my policies each month:
The value of a death benefit.
At this point in my life, I have no wife and no children that I am responsible for, yet I still believe in the value of having a death benefit. There are those who say, “I will buy life insurance when I’m married or have kids.” An individual who is adamant about not getting insurance until those life-changing events occur, in my opinion, is being shortsighted. Marital status and children responsibilities can change literally overnight. Choosing the attitude, “I will buy insurance when…” is a dangerous because “life happens.” Also, as people get older they’re generally less healthy. There is wisdom in choosing to lock in insurability by beginning a policy early in life while health is good and premiums are less – regardless of familial responsibility.
Also, when a life changing event does occur, changing the beneficiary designations can be done very easily.
Living benefits of permanent life insurance are phenomenally unique.
As a business owner, I see the value of paying money into an account that gives me complete protection, liquidity and control. Each month I pay a premium into each of my life insurance policies, and more than 100% of those premium dollars accumulate into what is called “cash value”.
As the contractual owner of the life insurance policy, I have complete control over the use of these cash value funds whenever and for whatever reason that I choose. The insurance company asks no questions and has no qualification process. They just simply deposit the funds in my bank account, per my request.
I was able to live in South America because of my Whole Life Insurance.
Whole Life’s wealth building opportunity is the most compelling reason for me to own the product. Over the years I have experienced countless examples of wealth facilitated by Permanent Insurance in my own life and in the lives of my friends.
Last year I wanted to take some time away. I spent six months in Brazil visiting old friends and remembering what it is like to live in another country. To provide me with this unforgettable experience, I took a loan against my policy’s cash value. When I returned from Brazil, I set up my own six-month payment plan to pay back those dollars. Now they are available for me to use again.
Affording myself an opportunity, like I did to live in Brazil, is what’s amazing about the cash value. In the future, maybe I will use a policy loan as a down-payment to buy another real estate investment property, or maybe I will pick another spot on the globe to explore. Either way, my life is full of abundance and opportunity because I choose to finance with my whole life policy. In my opinion, buying whole life insurance is a good idea for anyone.
For further information on Whole Life Insurance and it’s living benefits –
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