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Whole Life as an Investment
Whole Life as an Investment: An Overview
In addition to the whole life insurance death benefit, these policies also have an investment portion. This investment is managed completely by the insurance company, earns a guaranteed minimum return, and has many undisclosed costs. For these reasons, many people prefer to purchase Universal Life Insurance instead of using whole life insurance as their investment vehicle.
Whole Life Insurance:
Company Management Practices
As a common practice, whole life insurance is completely managed by the insurance company and has many hidden fees and expenses which are paid for by your premium. As they manage your life insurance, you have little to no control over the dividends paid to you or actual earnings of your whole life insurance policy investments.
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866.866.0242
Whole Life Insurance:
Undisclosed Expenses
With whole life insurance, the insurance companies have arranged the policies so that the majority of all costs are hidden from you. Some of the costs hidden from you are the actual cost of the life insurance and any administrative or maintenance fees. Some other amounts not disclosed to you are earnings from investments, and other expenses determined prudent by the "will of the board of directors". Whole life insurance may work for you as an investment if you are not interested in any of these isuues.
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866.866.0242
Honesty in Whole Life Insurance Information
In order to provide you with the most accurate whole life insurance information, we recommend starting with a phone call to our life insurance specialists at 866-866-0242 before making a decision your life insurance purchase. This way you can be assured of having the best life insurance policy for your needs, and help you decide if using whole life insurance as an investment tool is the right decision for you.
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