There’s always a nice, fresh feeling of starting all over again with the advent of a new year, and once all the holiday hoopla has died down and everything is more or less settling back into place, as you begin to gather all your tax preparation info, either for your own management or to turn over to your CPA. Either way it’s a good time to think about how you might have some opportunities within your immediate realm for real savings, regarding your insurance.


Rethinking Whole Life Insurance

If you’ve been throwing your money at term insurance, it might be a good time to rethink whole life insurance as a leading form of investing for savings that can’t be beat. There are some pretty compelling reasons to delve into whole life insurance, due to the ones that are impeccably designed, for a win-win all around. You’ll hear a lot of financial people going on and on about how less expensive the premiums are for term insurance, but a lot of these well meaning souls simply do not completely understand how well-designed whole life insurance is designed to operate.


Whole Benefits Worth Noticing

In shopping for whole life insurance, there are numerous benefits, and as the consumer, it’s important to look for opportunities that offer a real advantage to invest in. You should be given principal protection guarantees of your investment, which means that market losses will not affect the value of your cash as they can with mutual funds, etc. And no matter what the stock market is doing, it won’t have an impact on your money here. You are actually guaranteed that your money will grow annually, based on the economy, but your account will not be able to stand still or move backwards. And the growth that’s guaranteed is compound and tax free, unlike with mutual funds.


Problems With Mutual Funds

With mutual funds, you earnings are based on the “average rate of return,” and are subject to market losses, unlike a properly drafted whole life policy, which is guaranteed to continue forward movement, regardless of anything going on with the market. In an effort to sell you on a mutual fund, a financial adviser might suggest that your money would do better with those terms, but it’s important to look deeper. The average shown you may not exactly be an accurate representation, because they are able to select the time a representative average that best supports their case. This has to do with market entry and exit timing and not referring to compounded growth.


Save the Wild Ride for the Adventure Park

In today’s economy, and distrust, it would be ignorant to not expect the stock market’s wild swings to continue, with little if any predictability. While there will always be investors who love the thrill of the chase, successful investing does not have to produce the anxiety and stressors that are guaranteed in today’s market. The stock market of today is no safe place for anyone in search of stability and investments they can faithfully count on. 


Non-Taxed Dividends

When properly paid out to policy owners, the dividends will not be taxed. It would be remiss to not mention the absence of guarantee that any dividends whatsoever will be paid. This being said, most of the leading, established insurance companies have been paying out dividends for over a hundred years, without a break, ever. The value that is paid depends on a few different factors. Basically, it is correlated with the carrier’s profit. When the insurance carrier reaps bigger profits, the dividends will be higher, and vice versa.


Total Access, Penalty Free

Whole Insurance investments do not carry the obvious drawbacks with 401Ks and IRAs, which make premature access to your cash almost impossible, and penalize you for not paying back your cash back to them by a certain time and at a particular rate of interest. Contrastingly, you can always access to your cash value at any time, without reason and at any time prior to retirement or after, with whole life. There are no obstacles, and no slap on the hand, so to speak. With full access to your money inside of the life policy, you can make it something of a personal bank, whereupon you can use it to make yourself or others interest-bearing loans.


With Insurance, You’ll be Set for Life

With your policy activated, you have the guarantee of insurance for the rest of your life. Buying while you fit the requirements is not something to take lightly. You never know when life might deliver a sudden blow, preventing you from qualifying to purchase a new policy. You’ll have the assurance of your existing policy, no matter what.

Posted 4:42 PM

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Kipper Insurance Agency of California, Nevada & Arizona
Carlsbad, CA 92009
Phone: 760-471-2200
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