Just as your agenda helps you reach short and long-term goals, your financial plan helps meet your wealth management objectives.
Did you ever have your grandmother urge you to be careful and not to put all of your eggs in one basket? Well it turns out was right! When it comes to the ability to generate cash in the future, diversifying your investment assets is key. Whether it reduces the overall risk by spreading it over a variety of products or even across economy sectors, the diversification power goes hand in hand with the ability to navigate your investing options through times of market volatility.
From the many types of life insurance to their actual purposes, the thought of a flexible asset that can efficiently build, preserve, and distribute your wealth has been attracting its fair share of attention. As one of the few assets with a guaranteed value and predictable cost, whole life policies can provide loans in the event of a sudden, major expense but also retirement planning opportunities.
With predictability on its side, life insurance policy has the unique benefits to become eligible to be a paid up policy at a certain age, such as 65. Additionally, the ability to supplement income in the form of tax-free loan advance - without liquidating real estate asset - makes permanent life insurance one of the most efficient options for people trying to grow and preserve their wealth. A powerful investment tool to both your human and financial capital, a life policy can play a significant role at enhancing your assets as you invest safely and improve long terms returns without sacrificing cash accessibility.
Nearly effortless
Are you afraid of investing? Anticipating the impact of major market swings? Fear no more. With the assistance of the right experts, getting a sense of how investing in permanent life insurance would benefit you is as easy as putting together a jigsaw – it’s about choosing the pieces that are right for you.
Yet, for those who might still have doubts, here are just a few of the benefits of investing long-term and diversifying your investment portfolio with alternative assets such as whole participating life insurance:
1. Kill two birds with one stone: get life insurance and have investment taken care of for you
2. It doesn’t expire, and it has a cash value portion
3. Life insurance is not volatile like the stock market, its returns have a 5 year smoothing effect giving consistent returns
*Cash value and death benefit should increase year over year
4. Premiums never change
5. Owners can borrow against the policy without incurring any taxes and passes on free of income tax
*Owners can also access tax-free loans while they are alive
“The best way to measure your investing success is not by whether you’re beating the market but by whether you’ve put in place a financial plan and a behavioral discipline that are likely to get you where you want to go.” - Benjamin Graham