Life insurance does get more expensive the older you get. But just because you are a grown up doesn’t mean you can no longer benefit from owning participating whole life insurance.
Unlike all other types of life insurance participating whole life insurance is the only product that provides you with a guarantee that your premiums will be less than the cash value in the policy by the time the contract matures.
But regardless of that guarantee you can also benefit from owning participating whole life insurance by considering your insurable interest in your children and grandchildren.
Often a client will share what the cash values are of a participating whole life insurance they have owned since they were twenty or thirty years old. It is always so exciting to see that those cash value are more than what they have paid in premiums all those years.
Sometimes those cash values are even more than the premiums they have paid plus the interest they have paid on any loans they have taken against the death benefit of their policy.
These clients are the ones who are eager to purchase a policy on a child(s) or grandchild(s) because they see the tremendous value that their policy has provided them over the years AND what value that policy will provide the ones they love the most when they pass on.
Participating whole life insurance policies provide a tax-free advantage when it comes to protecting your assets and when passing your legacy on. And these same policies provide you a great way to maximize your Social Security Benefits while you are still living. That means you don’t have to die to profit from owning participating whole life insurance.
But once you do decide its time to leave this life those policies you own on a child or grandchild’s life can be passed on to your trust, the person who was insured or any other entity that you choose. The only catch is you have to decide whom the ownership will be passed on to before you actually die.
Many grandparents and parents chose to use participating whole life insurance policies as a way to help their children or grandchildren save money for college, weddings, home down payments, vacations, cars, etc. There are so many different ways on how the money in participating whole life insurance can be used today you really can’t count them all.
That is why bankers and corporations purchase so much cash value life insurance. According to one study 20% of all cash value life insurance sold today is purchased by corporate America. Bank of American alone owns over $17.6 billion and Wells Fargo another $12.7 billion.[i]
But you don’t need to be a banker or corporation to profit from owning participating cash value life insurance. People as young as 14 days old have been insured, and as to “being too old” there is no such a time or age that owning participating whole life insurance is not profitable for you.
If you want to be able to use more of you money and still leave a nice legacy to your children, grandchildren, charity or foundation, now is the time to consider owning participating whole life insurance. The only type of insurance that continually keeps growing cash value…guaranteed.
[i] The Motley Fool: You Won’t Believe What Bank of America is Doing Now, June 29, 2014