In our volatile financial world, it seems like there are no safe havens. The stock market continues to fluctuate. Plummeting real estate values in certain markets have yet to recover. Add to this, the difficulty with getting loans in a credit-strapped lending environment. So, where’s the worried consumer to go for financial stability? Consider permanent, cash value whole life insurance.
Flexibility and Guarantees
If you know anything about life insurance, it’s probably the fact that it pays a guaranteed death benefit to your heirs that is generally free of federal income taxes.1 And, that’s an incredibly important function and most likely why you are considering life insurance. But cash value whole life insurance also offers substantial benefits available to you while you’re living.
One living benefit of whole life is the easy access it provides to your cash value, generally federal income-tax-free, through policy loans. Need money to pay for an emergency home repair, reduce a credit card debt or cover a shortfall in college tuition? If you want to borrow, you can. Unlike a conventional bank loan, there’s no lengthy approval process, and you can’t be turned down. There are also no credit checks or penalties for repaying money too quickly. In fact, there’s no payment schedule on the loan at all.2
The longer you own a whole life insurance policy, the more cash value it will accumulate. As long as you
pay your premiums — which are guaranteed never to increase — you’ll have permanent protection and your cash value will grow on a tax-deferred basis. In addition, your policy is eligible for non-guaranteed, income-tax-free dividends which can help grow your cash value more quickly.
Upgrading Term to Permanent Cash Value Life
If you have term life insurance, which only pays a death benefit for a fixed period of time, it is easy to convert your policy to cash value whole life. Your New York Life insurance agent can show you how. Then you, too, can take advantage of the many benefits and stability that whole life insurance can bring to you and your loved ones.
This educational third-party article is being provided as a courtesy by Kimber Ericksen, New York Life Insurance Company. For additional information on the information or topic(s) discussed, please contact Kimber Ericksen at 208-338-6377, 1109 W Myrtle, Boise, ID 83702, firstname.lastname@example.org.
1All guarantees are based on the claims paying ability of the issuer.
2If you do not repay a loan, the cash value and death benefit of your policy will be reduced. Loans can cause a policy to lapse and may have tax consequences.