7 Reason to buy Whole Life Insurance

So I've decided to give politics a break.  It has really heated up lately.  I don't remember things so polarized as they are right now.  I wish everyone could take a break to and go home.  Be thankful for this country and enjoy it for what it is.  Something tells me it won't be this way for long.

I would like to talk about life insurance.  Did you know that 56 percent of married couples believe that their current life insurance coverage is inadequate.  I know most folks like Dave Ramsey and I agree with most of his outline for becoming debt free but I do not agree with buying term and investing the difference.  I happen to believe that permanent life or whole life is a far better buy.  These points should shed some light on the subject.

Facts about Whole Life
1.  Premiums guaranteed for life- Once you enroll in a whole life policy it will last you your entire life.  The premiums will not increase.

2.  Death benefit is guaranteed for life- The face amount, or coverage amount is guaranteed.  Some policies will decrease in value as the client ages due to higher risk of death, but once whole life is in place, it is there to stay.

3.  Guaranteed cash value growth- The cash value in most cases, is guaranteed to increase which is better than mutual funds which cannot guarantee a growth.  Here is where Dave and I disagree.  He claims term is much cheaper and you can invest the difference in a mutual fund earning 12%.  Well show me a mutual fund that earns 12% and I will be all over that!  I have still yet to find these funds he speaks of.

4.  Liquidity through loans against cash value- You may take out loans on the cash value of your policy for the entirety of your policy.

5.  Can provide retirement income- If the cash value of the policy is high enough, then the client may take retirement from the cash value and retain the death benefit originally purchased.  Even some commentators in the news media are gaining an appreciation for the value of whole life, especially after the stock market downturn of late 2008 and early 2009.

6.  Not accessible to creditors- Whole life is an exceptional wealth building vehicle that not only protects, but builds wealth and no one can touch it.

7.  Income-tax-free death benefit- My favorite part about whole life is that Uncle Sam cannot touch it either.  He cannot touch the loans on the cash value, the death benefit, or the increases in cash value.  This product is not taxed period.

So here are a few reasons to get you started on your journey to whole life.  I have much more I'd like to write about, but maybe another time.  In the meantime check out  Nelson Nash's book on the Infinite Banking Concept.  It shows many ways to take advantage of whole life insurance.