Whole Life Insurance
Tom is a young professional, he does not have a large need for Life Insurance, but does realize that could change down the road.
Once he realized the advantages to starting a plan earlier, his age and health working in his favour, he was willing to look into some options.
To take advantage of this we recommended a plan with premiums that would remain level and given the choice he would prefer a condensed period of paying premiums. He also would prefer a plan that would provide for a hands off approach with a savings element attached.
In this situation, a 20 pay (premiums stop after 20 years) Whole Life plan with a financially stable company and with a proven history of dividend performance was recommended.
- After showing Tom how the cash values of the plan will grow significantly to the point where at retirement they can be used as collateral to allow for tax-free loan payments to supplement his other retirement planning.
- The death benefit has also grown to still be able to provide for repayment of the loan as well as a tax free payment to his estate.