WEDNESDAY, JULY 22, 2020
You worked hard for years. But, your retirement savings is not as ideal as you like. Or, you may still be very young. You want to build up a way to pay for all your retirement goals now. Whole life insurance could be one way to do this. This type of insurance provides more than just a death payment. It provides financial compensation you can use for many things, even during your own lifetime. How does that work?
Understanding Whole Life Insurance
Some types of whole life insurance build up value to you during your lifetime. With each payment you make, a portion goes into an investment account. Over time, this account builds value, assuming the underlying investments build value.
As it grows in value, it may begin to pay dividends. These are profits from the investments. You may choose to collect these during your lifetime. Others save them up by reinvesting them.
Keep in mind whole life insurance investment value depends on market conditions. There are risks with this coverage. For many, it does grow value, and proves secure.
Receiving Your Money
Over time, you can begin to take payments from the account. You can often set up the fund to pay you a specific amount each month during your retirement. The amount available depends on how well the investments in the fund do. However, for many, it can produce a steady stream of income during retirement.
You can do anything you like with those funds. That includes using them to pay for retirement travel. Depending on how much you invest throughout your lifetime, you could end up with a sizable amount.
Some people use this type of payment to supplement their other retirement income. Others continue to reinvest the funds into their account to build wealth. If your accounts do well, you may wish to speak to your financial planner about ways to use the funds well.
It is important to know whole life insurance still offers a death benefit. If your policy remains in place, your beneficiary still receives a payment at the time of your death. The dividends you receive throughout your lifetime do not change that death benefit. Those funds remain in place for your beneficiary.
For some, whole life insurance can be a powerful tool to use. It can also be an investment vehicle to funding retirement goals.
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