Can Whole Life Insurance be Profitable During Retirement?

Whole life insurance is a complex policy which can be used in a lot of advantageous ways. This plan not only provides financial security for family members, but it features a savings account too. The savings account builds cash value and can be a profitable long-term investment.

life insurance3We will explain how profitable is whole life insurance during retirement and how to find whole life insurance quotes.

How does it work?

Permanent life insurance plans are long-term investment and clients have to be sure that they have the proper financial means to sustain these policies. This type of coverage will guarantee insurance proceedings after the insured passes away. The proceedings are paid to the policy’s designated beneficiaries. It is impossible to be the insured and the beneficiary at the same time.

Whole life insurance also features a savings account. A part of the money paid as premiums are redirected into the policy’s account where it is used to build cash value. The cash value accumulated in time, at a fixed rate.

How can it be profitable?

Permanent coverage builds cash value at a slow pace. This means that in order for the plan to be profitable, a long period has to pass. Purchasing whole life insurance during retirement is not profitable, however some plans do offer permanent protection, but only with a limited benefit attached to it.

After a certain period, between 5 or 10 years, you can withdraw money for the policy’s account. The amount will not be taxed as long as it doesn’t exceed the policy’s limits. Once you withdraw money from your savings account, you can use them as you may see fit.

If you are ever in financial troubles, you can borrow against the policy’s value. You do not have to pay the debt during your lifetime as the agency can deduct the owned amount from the policy’s benefit.

In conclusion, whole life insurance can be a profitable investment during retirement if the policy is allowed to build substantial cash value. For more information and free online whole life insurance quotes, click here!