Whether you're in your 20s or 50s, life insurance may have a place in your financial planning strategy. However, the younger you start, the sooner you can reap the benefits of whole life insurance policies. Here, we discuss the best time to start saving in whole life insurance. We'll also discuss when a whole life or term life policy makes more sense.
IBC Global, Inc. isn't just out to sell you a policy; we want you to fully understand what life insurance offers and find the right policy to meet your needs.
Term life policies cover you for a period of time. When the policy ends, you stop making premium payments, and your coverage ends too.
When you graduate from college, life insurance probably isn't the first thing on your mind.
However, student loans are a reality for many millennials. Note that federal student loans discharge when the borrower dies. However, private loans do not.
To avoid placing your debt on your loved ones, consider a term life insurance policy that lasts throughout the payoff date of your loans. Term policies are also valuable for young parents or married couples that want enough coverage to pay off college tuition or the remaining mortgage on a shared home. To further determine which kind of life insurance policy makes sense for you, learn more about the differences between whole life and term life insurance.
Whole life insurance is a more robust insurance product. Known as permanent life insurance, it has a number of benefits that term life policies lack, including the following:
Let's look at the best time to save in a whole life policy.
The answer is "as soon as possible." The rate of return for the cash value of many whole life policies exceeds the interest earned on standard savings accounts after a few years. So, your cash account grows tax-deferred while the death benefit protects your loved ones if you pass away unexpectedly.
If you're looking for comprehensive life insurance coverage, whole life offers the most protection. The earlier you invest in a whole life insurance policy, the lower your cost of insurance will be. So, it's never too early to gather insurance quotes and find a life insurance company with the most beneficial policy for you.
If you’re purely looking at the cash value, we can design a policy in a manner where you have a minimum premium. This will allow for minimal costs, and maximum cash value right out of the gates. This is a concept similar to what major banks and corporations practice with cash value life insurance.
When you purchase a whole life policy at an early age, you can accumulate a considerable amount of cash. Better yet, you can actually borrow against the cash value of your policy.
So, if you need a down payment for a home or other large expense, you can borrow against the policy without going through a complicated loan process. No qualification process exists for policy loans, and payments are optional, giving you more flexibility in paying back the loan.
Whether you have high credit card debt or want to leave a large lump sum for your beneficiaries, saving in life insurance can give you peace of mind. When is the best time to start saving with whole life insurance? Consult with the knowledgeable team at IBC Global to come up with a life insurance strategy that best meets your needs or to learn more about how to maximize your whole life insurance policy!