Angie Hooten - Hughes Insurance Agency Blog
For most people, life insurance is just another type of insurance that has nothing to do with investing their money. Many people believe a term policy is enough and a whole life insurance is a waste of money. Because of the stigma that life insurance created, it’s difficult to see its good side and many choose to go without it. However, once you get to see the beauty and benefits that a whole life insurance brings you, it might change your life and the lives of your loved ones.
If you invest in a whole life insurance policy written by a reputable company, here’s what you get.
Protection Guarantees for Your Money
The money that you pay for your premiums are not affected by the losses the market may incur. This is totally different from investing in stocks and mutual funds. With a life insurance policy, rest assured that your money is safe if the market tanks.
Annual Growth of Money
Based on the country’s economy, you earn interest on your money every year. The good thing here is that no matter what happens to the market, your account is sure to earn money. It is a tax free growth that is different from the average rate that you earn with mutual funds. You will find that most insurance policy’s interest rates play in the range 2 to 4 percent. However, it’s a steady guaranteed growth that is better than higher yet unstable rates.
Dividends issued to policyholders are never guaranteed. However, there are a lot of respected insurance companies that have been paying dividends yearly. There are factors that may affect the amount of dividends, but it all depends on how well business goes for the insurer. Another great thing about these dividends is that they are tax-free.
Tax-Free Access to Your Cash Anytime
Compared to IRAs and 401ks, whole life insurance policies allow you to access your cash value anytime, at any age and for whatever reason without penalties or taxes. The process is easy and hassle-free and you won’t worry about high interest rates when you don’t pay it back in time. With whole life insurance policies, you can leave your money in the policy or you can borrow it—it’s your choice.
Life Insurance Coverage
You are, first and foremost, buying an insurance policy and it’s what you are going to get for your lifetime. The feeling of security and protection gives you peace of mind even at a young age. It’s wrong to assume that you can buy insurance at any point in your life especially with illnesses and terminal diseases. Premiums also go higher as you age.
More than a well-written policy, you need to partner up with a great insurance company to get the protection that you deserve. At Allstate Agent- Angie Hooten-Hughes, we take pride in making sure that our client finances are well-protected at prices they can afford. To learn more about how we can help you, please contact our agency at (901) 373-6060 or Click Here to request a free quote.