Tag Archive: whole life insurance

Borrowing Against The Cash Value Of Whole Life Insurance

Do you know that whole life insurance pays a dividend? There is a key thing in this dividend that it is not taxed. If at the end of the year the whole life insurance policy pays out $1,000 in dividends on your policy. Simply you do not pay taxes on that money but you can take that money in the form of a check. It is also easy to reinvest it in the form of cash value of the policy or use the dollars to purchase additional, paid-up insurance. If you want, you can buy more insurance policy of that kind and earn interest.

You can borrow against your cash value. In your emergency whole life insurance quotes will help you a lot. You have to pay interest to the insurance company on this loan but the loan rates are very competitive with regular bank rates on home equity lines. The loan balance can be repaid at the time of death. In that case the equal amount will be deducted from the death benefit. There can be a potential tax free income and borrowing against your policy is easy for you. The interest rate of your borrowing money is low and it will allow the individuals for extra income. It is also appealing to the people for these reasons.

Why Should You Opt For Whole Life Policy?

whole life insurance There are some common twists on a whole life insurance policy. Limited payment and low interest are two most attractive advantages of whole life insurance. The whole life insurance policy sets the death benefit and premiums permanently but the cash value may fluctuate according to the interest rates. But the cash value is guaranteed by the policy and it can also be reduced even if the interest rates would make your investments worth less. You have to verify this with your insurance company. Knowing all these things you may take the decision yourself whether the whole life insurance is good for you or not.

If you have little interest or little experience in the investment of whole life insurance you should not make any delay to learn all about this. You can also opt for term life policy but the benefits of whole life insurance say that it is a better choice for you. Those who want a permanent protection in life, whole life insurance policy are best for them. You will have more control over this policy and it is universal in dealing with the customers. By reading online articles you may have enough knowledge on the working process of insurance and also you can learn how the policy works.