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  • Writer's pictureRaymond Ward

More Things You Didn't Know About Whole Life Insurance




Recently, I shared thoughts with you about 10 things you might not have known about whole life insurance. I've found that there are many misconceptions out there about whole life insurance, so I feel that it's important to right those wrongs.


Today I want to bring more facts about life insurance to your attention...


1. It's More Than Just End-of-Life Insurance

One common reason many people buy life insurance is to be able to cover end-of-life expenses such as funeral costs and debt payments. However, whole life insurance can be so much more than that.


In addition to the living benefits of your cash value account, whole life insurance can also be used for anything. When you insure yourself up to your full Human Life Value, you can actually leave a significant amount of money to your heirs. This can be seed money for future policies, a business venture, or any number of other decisions.


And, notably, you can enjoy the money while you're alive through policy loans. Policy loans allow you to leverage your dollars for anything you want. That can include investments or things that are just for fun. It's up to you.


2. There Are Different Types of Life Insurance

If I'm talking about life insurance, I'm most likely referring to whole life insurance. This is a type of policy that is permanent, and has certain guarantees for the policyholder. It also allows you to accumulate that cash value I mentioned. Although it's more expensive, that's because it's guaranteed to pay out someday.


There are, however, other types of life insurance. Term insurance is temporary insurance. Many people believe they only need this, even though it's statistically unlikely to be used. While it's technically cheaper, the price can skyrocket the older you get, which is also incidentally when your need is higher.


There's also universal insurance, which is correlated to the market. Many people believe this is "better" than whole life insurance, but it can actually be quite risky. When it comes to permanence and certainty, there's nothing like whole life insurance.


3. Not All Life Insurance Companies Are The Same

Just like there are different types of insurance policies, there are different types of insurance companies. Namely, there are mutual companies, and there are stock companies.


Mutual insurance companies are owned by all of the policyholders, and are designed to act in the best interests of all people with policies. Because mutual companies are beholden to their customers, they have long-term growth and results in mind, and make more conservative management choices. And because mutual companies are owned by policyholders, they pay dividends to policyholders.


Stock companies, on the other hand, are owned by shareholders. They may be pressured into making short-term decisions to appease these shareholders, which isn't always in the interest of policyholders. Profits also do not go to policyholders, they go to shareholders.


If you're interested in Infinite Banking, be sure to choose a mutual company to get the momentum and certainty you're looking for.


To hear more about the benefits of whole life insurance, watch my full video below! You'll learn about how banks use life insurance, how to use your policy, and much more.


 


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