Reasons to buy Whole Life Insurance
Insurance
Whole life insurance is a powerful financial tool to invest for you and your family. Here are some reasons why adding whole life insurance to your financial portfolio is important.
1. Whole life insurance can protect your family and their future.
Whole life insurance offers death benefit protection that can keep your family financially secure when you pass away. Whole life insurance allows you to pursue competitive cash value growth with that is not subject to market risk.
2. Whole life insurance allows you to pursue competitive cash value growth with that is not subject to market risk.
Whole life insurance has guaranteed cash value growth2 that builds at a steady, dependable pace. That allows it to complement fixed-income investments in your portfolio. New York Life offers the ability to customize your policy by setting a premium-paying period to pay up your policy faster while accelerating cash value growth.
3. Set up a replacement for your human capital by investing in whole life insurance.
Your portfolio growth is highly dependent on future contributions. Whole life insurance is a fail-proof way to arrange for the replacement your "human capital" if you’re no longer around to provide for your family. Your human capital consists of the wages, benefits, Social Security, and any other unrealized forms of compensation you would customarily expect to receive in the future.
4. Whole life insurance is a good investment for retirement and for safeguarding your assets.
Whole Life Policies are guaranteed to build cash value over time, and this cash value can help you pay for big-ticket items like a new home or launching a business. Upon retirement when your life insurance needs decrease, you can use that money to supplement your income during down markets. Instead of selling off portions of your portfolio when prices are depressed, you can use your policy's cash value while the market is down, giving your other assets time to recover.3
5. Whole life insurance is great for "reinvesting" your dividends.
One of the benefits of purchasing whole life coverage from a mutual company is the fact that you will be eligible to receive dividends4, if declared. Many policy owners use their dividends to purchase additional coverage (through paid-up additions) which provides more death benefit protection, more cash value accumulation, and more dividend earning potential. If you prefer, however, you can simply take your dividends in cash or use them to pay future premiums.