Whole Life Insurance as an Asset

Whole Life Insurance as an asset

Life, at times, is filled with so many responsibilities and priorities that it sometimes becomes hard or overwhelming to find time actually to start or even decide where to begin. We are preparing you for the eventualities that can happen in this life. 

Life Insurance

In our process, we believe that financial protection is the base of any financial plan. Making sure that the loss of life will not derail a financial plan is key to the success of itself. Going through such event is tolling mentally and emotionally; it should not also create financial struggle. We work with the highest rated life insurance companies to cater to our client’s different needs and circumstances. Life insurance is meant to ensure your loved ones with financial protection after you die, in exchange for the premiums you pay to your insurer during your lifetime. Some life insurance policies can provide you with financial security for the short term. In contrast, others accumulate cash value, offering a living benefit that can be used for supplemental retirement income, funding for a child's education, or cash for emergencies.


Term Life Insurance

Term Life Insurance is generally low cost compared to permanent protection. Many of these products allow the policyholder to convert to permanent policies such as Whole Life Insurance. It is essential to understand oneself before settling on a plan as the cost of these premiums are not guaranteed for life.


Whole Life Insurance

Whole Life Insurance provides three fundamental guarantees:

-A guaranteed amount of life insurance.

-A guaranteed level premium and premium payment period.

-Guaranteed increases in cash value.

Whole Life Insurance will pay a tax-free lump sum to your loved ones in the event of your death. This type of life insurance guarantees a pay-out because it covers you for life, so quotes are often pricier than term insurance premiums. Whole Life Insurance is more expensive than term insurance because a claim is inevitable. You should, therefore, compare prices and make sure you can meet the cost and remember that you could be paying the premiums into your 70s and 80s, depending how the policy is designed.

Cash Value Accumulation

An additional benefit to Whole Life Insurance is that it will accumulate cash over a period of time and will be credited with dividends (depending on what company insures it. Are also not guaranteed). If the policy is designed correctly this cash can be accessed during the insured’s lifetime and some or all may be tax-free.

In some instances, this type of insurance can have better yields than bonds in the long run and may be suitable to use as an additional asset in a portfolio. This is not a recommendation and should be reviewed to see if it is the right fit for your financial situation. Contact Us for a complimentary review of your plan.


The insurance cover is relatively safe as the amount accumulated during the whole life policy is not subject to stock market volatility. Regardless of how stock markets perform, your cash value grows at a fixed rate. Over time, your system builds cash value that is not subject to stock market declines. It is a welcome source of additional income that can help you fund other expenses.


Who Needs It?

Whole Life Insurance does not suit everybody. You might, for example, have no need for life insurance in your 80s as you will probably have no mortgage or dependent children. 

However, some people like to provide an inheritance for their loved ones, if only to cover their funeral costs. Many people also choose to take out the whole life insurance to meet a future inheritance tax bill or to use the cash value as supplemental retirement income


Contact A Financial Advisor

When it comes to planning for your family’s future, one of your best resources is an experienced financial planner. Advisors like Mateo Garcia have been helping families realize their dreams for years. We recommend contacting an experienced advisor like Mateo Garcia before planning any next steps.