Cash value is liquid and you can borrow against it any time for any reason. (It can also be withdrawn, but we don't recommend withdrawals in most situations.) Cash value becomes "all-purpose" savings that, like a Swiss army knife, can be used for multiple purposes... home repairs, college tuition, a rental property down payment, healthcare costs, business expenses, a new car, etc. By being able to save in one large account (instead of many other smaller, single-purpose accounts), you can build liquidity and financial flexibility. Policy loans can be repaid on the borrower's schedule while the cash value used as collateral keeps growing, unaffected by the loan. Permanent insurance increases the policy holder's estate value and creates legacies for heirs and charities. The death benefit grows with a whole life policy and provides additional value to the estate. In certain situations, death benefits can be utilized by the policy holder while still living, as policies can be sold on the secondary insurance market or death benefits can be accelerated according to riders in cases of terminal illness. An adequately-funded permanent insurance policy with a Waiver of Premium rider can potentially eliminate the need for disability insurance or term life insurance. In many states, whole life policy cash value accounts are protected from liens, lawsuits, and (in all states) from the prying eyes of the IRS. Life insurance policy cash value is not counted as an asset for college, nor are dividends considered income by the IRS. Dividends can create reliable permanent retirement income at rates of return far beyond bank products, with greater protection and privacy of principle. (Although not guaranteed, dividends have been paid by mutual insurance companies for over 150 years through every economic challenge imaginable.) I describe MANY ways to use this age-old, rock solid financial strategy in my first book, . I encourage anyone who owns (or is considering owning) whole life insurance to read this little book - it's a "handbook" for getting the most out of your policy! The BIG Bonus of Saving:
Cash value is liquid and you can borrow against it any time for any reason. (It can also be withdrawn, but we don't recommend withdrawals in most situations.) Cash value becomes "all-purpose" savings that, like a Swiss army knife, can be used for multiple purposes... home repairs, college tuition, a rental property down payment, healthcare costs, business expenses, a new car, etc. By being able to save in one large account (instead of many other smaller, single-purpose accounts), you can build liquidity and financial flexibility. Policy loans can be repaid on the borrower's schedule while the cash value used as collateral keeps growing, unaffected by the loan. Permanent insurance increases the policy holder's estate value and creates legacies for heirs and charities. The death benefit grows with a whole life policy and provides additional value to the estate. In certain situations, death benefits can be utilized by the policy holder while still living, as policies can be sold on the secondary insurance market or death benefits can be accelerated according to riders in cases of terminal illness. An adequately-funded permanent insurance policy with a Waiver of Premium rider can potentially eliminate the need for disability insurance or term life insurance. In many states, whole life policy cash value accounts are protected from liens, lawsuits, and (in all states) from the prying eyes of the IRS. Life insurance policy cash value is not counted as an asset for college, nor are dividends considered income by the IRS. Dividends can create reliable permanent retirement income at rates of return far beyond bank products, with greater protection and privacy of principle. (Although not guaranteed, dividends have been paid by mutual insurance companies for over 150 years through every economic challenge imaginable.) I describe MANY ways to use this age-old, rock solid financial strategy in my first book, . I encourage anyone who owns (or is considering owning) whole life insurance to read this little book - it's a "handbook" for getting the most out of your policy! The BIG Bonus of Saving:
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