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Whole Life Insurance - Good Investment or Wasted Money? You've read about the pros and cons of investing your money in various ways. After reading extensively, are you still wondering if whole life insurance is a good investment? The answer isn't as easy as you might think.Sometimes whole life insurance offers an excellent investment opportunity, but not always. Whether or not it does depends on the age, health, and financial circumstances of the prospective policyholder. Furthermore, some policies offer better investment potential than others. For example, if you are beginning a family after age 40, purchasing whole life insurance may be wise. The cost of the premiums may be comparable to those of term life policies at this age. Additionally, if you want to be insured for more than 20 years after your 40th birthday, term life premiums become expensive. People who have had serious illnesses or chronic health problems may find term life insurance more expensive than whole life insurance. Some persons may even have difficulty qualifying for term life insurance. In contrast, most whole life insurances offer stable premiums throughout the duration of the policy. If you have a large estate, you may benefit from creating an insurance trust with a whole life policy. This type of trust can be used to pay probate fees, inheritances taxes, and other estate-related expenses. Finally, most whole life insurance policies do not require beneficiaries to pay taxes on the payoff. If you don't intend to hold the policy for a long time, whole life insurance policies may not be a good investment. For example, if you want coverage for only 20 or 30 years, you may be better off choosing a term life policy. Often, whole life premiums do not cover the commissions and other expenses incurred by policy owners for at least 10 years. If you want a short-term investment, consider purchasing a term policy instead. Invest the money that you would otherwise have spent on insurance premiums into a solid mutual fund or stock investment. Your capital will grow much more quickly if you invest it this way. Whether you will find whole life insurance a good investment depends largely upon your personal circumstances. Determining whether this investment strategy will work for you, consult a financial planner or insurance specialist. These experts can help you make the right decision for your financial circumstances.
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Article Tags: Life Insurance, Whole Life Insurance, Term Life Insurance, Whole Life Insurance Good Investment Article Source: http://www.articlesbase.com/insurance-articles/whole-life-insurance-good-investment-or-wasted-money-476618.html About the Author:
http://www.WholeLifeInsuranceAdvice101.com is a website fully devoted to giving the very best information on whole life insurance and much more. Whether your trying to decide if whole life insurance is a good investment or you would like to know what calculate for your needs, we have you covered!
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