Category Archives: Guest Expert Corner

“Bank” on Whole Life for Your Financial Needs – Right Now

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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, klericksen@ft.newyorklife.com.

 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.

Even During Tough Times, Life Insurance Offers Peace of Mind

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In addition to death benefit protection, permanent life insurance accumulates tax-deferred cash value which can be accessed for college, to buy a home and help build your retirement nest egg.2,3

As you watch the value of your property, home or retirement investment savings struggle in the current economy, you may be wondering about ways to protect your family in the event of an unforeseen event. One option you may not have considered is the purchase of a whole life insurance policy.

It may not be something you’d automatically turn to, but whole life insurance offers guaranteed death benefit protection in addition to multiple tax advantages and flexibility. Owning a whole life policy can be a great financial alternative, not only for the protection of your loved ones but also a financial option for your living needs.

Invest in Your Loved Ones

The primary promise of life insurance, of course, is that your loved ones will be protected in the event of your death. And with a whole life policy, your death benefit is guaranteed,1 whether the payout comes in a matter of years or decades. This is an investment that provides protection in the long-term interests of those you care for most, as well as your own peace of mind.

Invest in Your Future

But, what you may not know is that a whole life insurance policy is much more than protection against the unknown. It also provides you with tax-deferred cash value that accumulates over time. In the event of sudden unforeseen or happily anticipated expenses, it provides a readily available source of funds. And in the long run, it can also supplement your retirement income.2,3

Any kind of financial strategy these days seems fraught with uncertainty, so it’s important to consider carefully what vehicles work best for your own circumstances.

This educational third-party article is being provided as a courtesy by Kimber Ericksen, Agent, New York Life Insurance Company. To learn more about the information or topics discussed, please contact Kimber Ericksen at 1109 W Myrtle, Ste 300, Boise, ID 83702 klericksen@ft.newyorklife.com or 208-338-6377.

1Guarantees backed by the claim-paying ability of the issuer.

2If your life insurance policy is paid up and your need for a death benefit decreases.

3Loans against your policy accrue interest and decrease the death benefit and cash value by the amount of the outstanding loan and interest; withdrawals reduce the available death benefit.

Neither New York Life Insurance Company, nor its agents, provides tax, legal or accounting advice. Please consult your own tax, legal or accounting professional before making any decisions.