Whole Life Insurance [Top 14 Pros and Cons] #wholelifeinsurance

Grab your free copy of the Self Banking Blueprint https://www.insuranceandestates.com/self-banking-blueprint/ Whole life insurance offers many benefits and yet it is important to understand the advantages and disadvantages when deciding if it is right for you. This webinar helps you do this by offering a great overview of the pros and cons of whole life insurance focused on cash value growth.

📖 Chapter Timestamps Here ⏰
00:00 Intro
1:09 Top 12 Whole Life Insurance Advantages
11:00 5 Whole Life Insurance Disadvantages to consider
20:45 Mutual Insurance Company vs Stock Insurance Company
22:20 Best Whole Life Insurance Companies - Our Top 5 Criteria

Whole Life Insurance Advantages

#1 Ownership: With whole life you own the policy for life. In contrast, with term life you are renting a death benefit.

#2 Permanent: your whole life policy lasts until you die; most term insurance expires worthless.

#3 Forced Savings: Some people need a little help being financially disciplined.

#4 Tax Favored: Both the death benefit and cash value.

#5 Creditor Protection: Depending on the state you live in, your cash value may be protected from creditors, bankruptcy and lawsuits.

#6, 7, &8 The three guarantees of whole life, Guaranteed Death Benefit, Guaranteed Fixed Premiums, and Guaranteed Cash Value Growth, provide predictability and a solid financial foundation to grow on.

#9 Dividends: Mutual insurance companies pay dividends to policyholders, helping increase both the death benefit and cash value account. Although not guaranteed, the best mutual insurers have paid dividends for over 100 years straight. See https://www.insuranceandestates.com/top-10-best-dividend-paying-whole-life-insurance-companies/

#10 Living Benefits: The ability to tap into your death benefit while you are alive.

#11 Waiver of Premium: If you qualify, the carrier waives your premium but your policy stays in force.

#12 Control: Creating predictability based on guarantees, so you are in control of your financial future.

Let's now take a look at the potential disadvantages.

Whole Life Insurance Disadvantages

#1 More Expensive Than Term: The longer you live, the more affordable whole life insurance becomes versus term life, which gets more expensive over time. The typical mantra is buy term and invest the difference. But that is often short sighted for many reasons, see: https://www.insuranceandestates.com/buy-term-invest-the-difference-btid/

#2 Agent Commissions: Consider alternative assets and commissions included. Additionally, a properly designed policy focused on cash value growth may have 40-60% lower commissions.

#3 Fees & Expenses: Over a lifetime can be up to 10X less than a traditional market based account or managed portfolio.

#4 Death Benefit Does Not Include the Cash Value: A whole life policy designed for maximum cash value growth has an increasing death benefit.

#5 Limited Contribution Limits: It is important to design your whole life insurance policy so that you can overfund the policy and avoid going over the MEC limit.

We also have two articles on our website that cover this topic in great detail

*Whole Life Insurance Pros and Cons: https://www.insuranceandestates.com/whole-life-insurance-pros-cons/

*Advantages and Disadvantages of Whole Life Insurance: https://www.insuranceandestates.com/whole-life-insurance-advantages-disadvantages/

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DISCLAIMER: All content in this video is for educational purposes only and is not to be interpreted as personal financial advice. Always do your own due diligence.