The old saying of ‘you get what you pay for’ certainly applies to consumers when shopping for life insurance. Most consumers and many advisers push term life insurance as the only and best option for young families, which in some cases might be the best option.
However, with roughly half of people under 45 not saving anything for retirement, there is a tremendous need in our country for guidance. If you are looking for guaranteed cash value build up, whole life insurance can provide cash growth as well as tax free withdrawals when retirement time is at hand.
Additionally, your whole life policy can act as an emergency fund that you can pull from when/if you need the down payment for a house, need money for college expenses, or just want to take a vacation! There are no limitations on how the cash is used, no tax consequences, and you have complete control over your own individual policy.
Furthermore, many current Whole Life policies come with a Chronic Illness Rider giving the policy holder the opportunity to pull out funds against the death benefit if they suffer a chronic illness that requires funding for long term care.
Term life insurance is less expensive then Whole Life, but these policies are simply serving the purpose of providing a death benefit in the case of the insured’s untimely death within a specific period of time (10 years, 20 years, etc). Term life doesn’t pay dividends or build cash value, and ends at the end of the term. In many cases when sitting down with clients, we learn that a combination of Whole Life and Term provides the best death benefit protection, while at the same time creating a stream of income to use in the future. If you would like to learn more about your options, please visit us at www.lionshareinsurance.com or contact us below: