Whole life insurance as an investment is considered, by some, a type of whole life insurance policy that brings about several investment benefits. A Whole life insurance policy is an insurance policy that lasts a person until the end of their lives. When paying the premiums on the insurance policy, some of this cash is used to create an investment cash fund. The cash fund is at the consumer’s reach, meaning that whenever a loan is required, this cash fund could be accessed and tax-free loan with minor interest can be taken from it. If a consumer lives to an age of more than ninety, they will receive the insurance policy’s face value. If they don’t, the face value of the policy will be given to their beneficiaries.

Advantages

Whole life insurance as an investment provides many benefits that might suit your need. A few of them are explained below:

• Cash funds of whole life insurance as an investment increase on an annual basis. This means if you were to take a loan from your cash fund, the loan will be larger next year than this one as the cash accumulates, so that in, say, ten or fifteen years, a significant amount of cash would have accumulated to pay for the education of your children.
• If you are not very disciplined when it comes to saving money, taking whole life insurance as an investment, in essence, means your savings increase every year because of the cash fund concept. So if you are unable to save up money yourself, whole life insurance as an investment helps you to do so.

If you would like to read more about other forms of life insurance, just check life insurance types.

Disadvantages

• The major disadvantage of taking whole life insurance as an investment is the fees deducted out of your cash fund: the deduction is utilized so that part of the expenses of the insurance company are covered. This means that you might need to wait for a few years before extracting any significant amount of money from your cash fund, because the fund’s cash value accumulates year after year.

To take whole life insurance as an investment could be beneficial for you. But before you make up your mind, check “The Different Types of Whole Life Insurance“.

And fill out this quote form if you would like to get a quote on insurance!