Is Whole Life Insurance a Good Investment?

Whole life insurance is a powerful financial tool for you and your family. Here are five reasons why you may want to add whole life insurance to your financial portfolio.

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1. Whole life insurance can protect your family and their future.

Whole life insurance offers death benefit protection that can keep your family financially secure in case you pass away, but it’s also a good way to leverage your money. On average, you could obtain $250,000 in protection for just $273.56 each month.1

2. Whole life insurance allows you to pursue competitive cash value growth with that is not subject to market risk.

Whole life insurance has guaranteed cash value growth2 that builds at a steady, dependable pace. That allows it to complement fixed-income investments in your portfolio. New York Life offers the ability to customize your policy by setting a premium-paying period to pay up your policy faster while accelerating cash value growth.

Set up a replacement for your human capital by investing in whole life insurance.

Your portfolio growth is highly dependent on future contributions. Whole life insurance is a fail-proof way to arrange for the replacement your “human capital” if you’re no longer around to provide for your family. Your human capital consists of the wages, benefits, Social Security, and any other unrealized forms of compensation you would customarily expect to receive in the future.

Whole life insurance is a good investment for retirement and for safeguarding your assets.

Whole life policies are guaranteed to build cash value over time, and this cash value can help you pay for big-ticket items like a new home or launching a business. Upon retirement when your life insurance needs decrease, you can use that money to supplement your income during down markets. Instead of selling off portions of your portfolio when prices are depressed, you can use your policy’s cash value while the market is down, giving your other assets time to recover.

Whole life insurance is great for “reinvesting” your dividends.

One of the benefits of purchasing whole life coverage from a mutual company is the fact that you will be eligible to receive dividends4, if declared. Many policy owners use their dividends to purchase additional coverage (through paid-up additions) which provides more death benefit protection, more cash value accumulation, and more dividend earning potential. If you prefer, however, you can simply take your dividends in cash or use them to pay future premiums.

Employee’s whole life insurance policies through work.

Your life insurance should offer you flexible options that allow you to choose the coverage that’s right for you. Learn how employee’s whole life insurance offered through New York Life will help you purchase individual permanent life insurance through voluntary payroll deduction.

What Is Employee’s Whole Life Insurance?

In cooperation with many employers, New York Life Insurance Company offers a program to help provide employees with insurance protection and financial security for themselves and their families. This program helps many people purchase individual permanent life insurance, New York Life Employee’s Whole Life, through a voluntary payroll deduction, and gain valuable protection.

The benefits of buying life insurance through work.

No medical exams: Because an Employee Whole Life policy is issued on a guaranteed issue basis, a completed application is all that’s generally necessary for approval, with limited or no health questions.

Lower premiums: One of the advantages of employee life insurance is the high number of people in the group. This can make the cost lower than it would be if an employee purchased an individual policy on their own.
Permanent death benefit: Your coverage will never expire if you pay your premiums.

Cash value accumulation: With time, your life insurance policy will provide increasing cash value in addition to valuable coverage. This cash value can be borrowed against for education, retirement, emergencies, or to help you meet other financial needs. (Policy loans accrue interest and will reduce the available cash surrender value and death benefit.)

Convenience: Premiums are deducted directly from your paycheck, which means there are no checks for you to write and no payments to mail.

Portability: Should you leave your present company or retire; your policy goes with you. New York Life has several payment options to help you maintain your policy while still addressing your changing needs and/or budget.

Flexibility: You determine how much insurance you need, and for whom. We also offer additional, affordable options through riders (some at an additional cost) to enhance your coverage.

Family coverage: Your spouse, your children, and even your grandchildren may become eligible to obtain quality life insurance coverage through this program when they answer a few simple medical questions.

Reliability: New York Life has been providing for families like yours for over 175 years. We offer protection you can count on.
Two people working on a laptop together at work.

Answers to your employee life insurance questions.

Who is eligible for a policy?
All full-time employees (ages 16–70, 30+ hours per week) of participating companies, their spouses, their children, and up to six of their grandchildren (ages 15 days–25 years) may be eligible for coverage provided the employee participates.

When does the insurance begin?
Your insurance coverage begins once you sign the application and the payroll deduction authorization form under a temporary coverage agreement. Your permanent policy will be issued after that.

How does the cash value of my policy grow?
This policy has a guaranteed cash value that will increase annually if premiums are paid on time. Dividends, which are neither guaranteed nor an estimate of future performance, may add to your policy’s value.

Can I purchase additional insurance later?
Additional policies for more coverage can be purchased during the annual re-enrollment period.

What happens if I leave the company?
Your life insurance policy is portable—you own it. Should you leave your employer or retire, you will be billed directly, in a manner that is convenient to you. The amount of your premium will change to reflect the billing option you choose.

Does this replace my employer-provided group life insurance?
This insurance does not replace or affect your employer-provided group life insurance. Your employer is not permitted to endorse or contribute to this plan and, unlike with many group insurance plans, your policy coverage is not reduced or eliminated when you retire or leave the company.

Portable life insurance—protection and more.
This portable life insurance will stay with you whether you change jobs or retire. It’s easy to apply, it’s affordable, it’s available to you and your family, and the premiums are automatically deducted from your paycheck. The application includes few or no health questions, and there are no medical exams.

Your permanent Employee’s Whole Life policy premiums are guaranteed to never increase, your policy is guaranteed to grow cash value, and your policy will be eligible to earn dividends,1 which you can use to increase your coverage.

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