Life Insurance in an Economic Downturn
Today's economic reality has many individuals looking for ways to protect their portfolios from the impact of a chaotic market. Whole-life insurance can provide the security you are looking for and the benefit of tax-deferred growth. Not only does it provide a guaranteed income distribution at death, but it also provides critical cash accrual that can be used for financial commitments while you are still living. Permanent life insurance is an excellent vehicle that can be utilized for a variety of changing needs. Navy Mutual is currently providing a crediting rate of 7.4%.
One of the best known insurance providers to the military who consistently ranks highly among consumers provides a rate that is 2% less than Navy Mutual's crediting rate on permanent life insurance.
Why Buy Life Insurance?
Consider the typical reasons that motivate us to purchase life insurance:
- To protect your family
- To protect a business relationship
- To transfer wealth from generation to generation
- To place another asset in your portfolio
Common terminology says, "Buy term and invest the rest." In reality, this may not always be your best choice. Term insurance is a terrific option for those looking for the highest level of coverage possible for the lowest cost, for a specific amount of time. Some financial representatives suggest that you will no longer need life insurance when you are older. Examine a few of the facts about permanent life insurance:
- Final Expenses: When you purchase a permanent policy, you are guaranteed that the death benefit will be paid out; one certain fact is that everyone does pass away eventually. This allows you to use other assets during your lifetime, and allow the guaranteed money to cover other issues such as estate taxes and surviving spouse income.
- Wealth Accumulation: You accrue interest inside this plan, which allows you the freedom to choose more aggressive assets in your investment portfolio. If you fall short of achieving your desired retirement nest egg, the tax-deferred cash inside the policy can be used to supplement your retirement income.
- Wealth Transfer: Life insurance policies are treated favorably when it comes to taxes. The benefits are paid to your beneficiary income tax free and, when part of an irrevocable trust, estate tax free. Estate taxes can take a big chunk from your investment accounts, real estate and business values, and may force your heirs to have to sell assets. The favorable tax treatment of the permanent plan helps to make this type of policy an excellent way to pass money from generation to generation.
Do It Right from the Start
Permanent life insurance should be a part of your overall financial portfolio, right from the start. While the death benefit payment is an obvious part of your financial planning, the part it plays in protection of your assets and in overall wealth accumulation is often overlooked. Permanent insurance allows you to accumulate cash over time, provide protection, and distribute your accumulated wealth. Life insurance is at the very base of any sound financial plan.
See how Navy Mutual's whole life insurance Permanent Plus integrates with your plan.