Whole Life Insurance from Investment point of view
Whole Life insurance from the investment point of view goes by the words of the famous quote by Warren Buffet, “the rearview mirror is always clearer than the windshield.” As the quote dictates, the present is always clear and transparent but the picture that the windshield displays is never a perfect judgment. When it comes to considering life insurance as an investment, most of us do the same and keep moving ahead for more without knowing the possibilities of an uncertain future that we are leaving in the self-created windshields of our minds.
Practically speaking investing in life insurance is one of the best and most significant financial decisions you can ever make. It is an initiative taken to safeguard and protect all your personal belongings and safeguard your future. To mention in simpler words, buying insurance is an investment fund for various purposes like child education, retirement fund, and so on.
Know the Top Five Benefits of Investing in Whole Life Insurance
Compared to term life policies, whole life policies combine protection benefits with a savings account.
Whole life insurance policies premiums consist of two parts: one part behaves like traditional insurance that compensates the insurance company for the acceptance of insurance risk, the other part builds up a cash value.
This cash value builds up over time as you make your premium payments and the insurance company invests your money. The insurance company also guarantees the cash value.
- Retirement Funds: Insurance gives you a monthly source of income after retirement and guarantees you that the future will go on smoothly without the pain of falling short of finances to meet the daily life needs.
- Education Funds: Insurance helps a great deal in supporting the education of your children. Getting them to the best schools and universities to provide the best education facilities is a very costly affair
- Future Needs: Using the funds from the value attained by insurance policy helps a great deal in fulfilling your dreams and lifelong hopes. Financial incapability won’t be a hindrance for letting you fulfill your dream
- Emergency Funds: With the cash value attained through the insurance policy, you can cut down all your debts, reduce your business worries in case of a business setback or use the money for business expansion.
- Mental Peace: This becomes a saving tool when uncertainties of life bring you despair. You are never worried as you known that you or your family will have enough financial security and stability in challenging and unexpected situations. As you grow older and older, you will live with the peace of mind and inner satisfaction that even after your demise your loved ones will stay secure.
Essential Situations Where Investing in Whole Life Insurance is Beneficial
Financial advisors and life insurance representatives are the best people to explain to you and give you various insurance options. They also help you understand when to buy, under what situations and how much to buy. As per their understandings, some of the conditions where you can go to opt for insurance are:
A stage when you are planning to start a new family, life insurance becomes significant. At the start of a new life, you are on your way to securing the future of your family and loved ones.
When you have a complete established family, life insurance becomes a must. When running a family, you need finances to support the basic needs of your family, funds for domestic chores and of course for the education and upbringing of your children.
If in case you are planning to buy a new house on mortgage, insurance works beneficially for you because the cash value will help you pay for the extra mortgage debt and save on your interest.
If you have a business to take care of, then insurance works wonders for all those who connect with you in the professional world. In case of emergency or unexpected hardship of life, your business and those who get affected by your business will not be in trouble.
If in case you say ‘NO’ to life insurance, then there are just a few options left for future:
- Your family struggling for necessities of life
- No money for future expenses
- An unstable and pressurized mind
Whole Life insurance is undoubtedly the most productive investment for you and your family. Another quote from Warren Buffet, “Someone is sitting in the shade today because someone planted a tree a long time ago” holds true when you think about the life insurance investment made by your parents and grandparents because of which you are enjoying the joys of life today.