“I bought a new life insurance policy but the small print is impossible to understand. All I´m sure of is that after I die, I can stop paying.”
Do You Want to Stop Paying Your Life Insurance Premiums?
What happens if you own a whole life policy and you don’t want to keep paying the premiums, but don’t want the policy to lapse? Or when you can’t afford the premiums any longer, but still want coverage?
If payments are stopped without altering the policy or communicating with the insurance company, you could lose the policy, just like a homeowner can go into foreclosure if they stop making mortgage payments.
But there are other options to simply letting a policy lapse! These options are well-worth considering, especially because:
“…We place a lot of “stock” in the so-called “experts” and financial celebrities…. Unfortunately what they do and what they say are of two opposing philosophies.” – Wealthicity.com
Actions Speak Louder Than Words
It seems that the best advice can be learned not from listening to financial corporations and so-called experts, but by watching what they DO.
Banks put billions of dollars into “BOLI” – bank-owned permanent life insurance – while advising their customers to put their money into savings accounts and CD’s earning next to nothing. In a recent video from the Palm Beach Letter, a finance insider confessed that many financial gurus and professionals have none of their own dollars in the stock market.
In Suze Orman’s case, there is also a distinct gap between what she advises and the actions she takes – a gap is so wide that one blogger stated she must hate the financial advice she doles out through books and TV!
“Whenever I hear a financial consultant (or anyone) talk about less expensive premiums for term, I know they really don’t understand how this animal ofproperly designed whole life insurance really works.”
Is whole life insurance a good investment?”
Few financial questions have ever sparked more controversy than this one. One post on a blog about investing for doctors (which asserted whole life should be avoided) produced more controversy, comments, and “hate mail” than all of his other posts combined – a current total of 764 comments, which the author/moderator warns readers “may take you over 4 hours to read.”
The short answer to “Is Whole Life Insurance a Good Answer” may shock you if you’ve been reading our blog for long, because, NO, we don’t consider it to be a good “investment”!
“Mr. Bond, all my life I have been… in love with gold. I love its colour, its brilliance, its divine heaviness… I ask you… is there any other substance on earth that so rewards its owner?”
– Ian Fleming, Goldfinger
People have held and invested in gold since long before our U.S. dollars existed. Gold is mentioned as a valuable and precious metal in ancient texts and scriptures, such as those describing the gifts that the wise men offered to the baby Jesus. It has been traded as money and it has been used to back the value of currencies. It is used to craft fine jewelry and in the circuit boards of mobile phones, due to its ability to conduct electricity even better than copper.
“If you want to start an argument, ask a group of financial advisers what they think about buying life insurance for children.” – Bankrate.com
Should you get life insurance for grandchildren or for your child? Don’t people only “need” life insurance if they have a family to support? Why do people insure their children and grandchildren, and does it make sense to insure an heir?
We believe that life insurance is a WANT, not an absolute need, and there are several reasons why a lot of people – who have done their due diligence – WANT to get life insurance for their children.
Actually, we’ve received more requests recently from people who want to set up life insurance policies on their children! Why? There are many reasons – we give you five below. (Often, the biggest reason is the first.)
Benefits of life insurance for grandchildren and children:
1. People desire to maximize the growth of their savings (cash value) in tax-advantaged whole life policies.
The younger the insured is, the lower the cost of insurance is within the policy. This means that cash value grows more quickly and at a faster rate. The internal rate of return on a whole life policy on a younger person engineered for maximum cash value (maximizing paid-up additions) is currently around 4 to 5%. That’s at least 10 times better than most bank CD rates!
This website is provided for informational purposes only. The information contained herein should not be construed as the provision of personalized investment advice. Information contained herein is subject to change without notice and should not be considered as a solicitation to buy or sell any security or investment. Investing involves the risk of loss and investors should be prepared to bear potential losses. Past performance may not be indicative of future results and may have been impacted by events and economic conditions that will not prevail in the future.
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