Whole life insurance costs five to 15 times as much as a comparable term policy which leads to the surrender of most whole policies.
If you surrender your policy too early, you can expect your cash value to be very low due to only a small percentage of your premium going into the savings account while the rest is used to pay for upfront costs like administrative fees and the agent’s commission.
While the forced investment aspect of whole life insurance can help some people save, most dedicated investment options (like a mutual fund or IRA) will provide a better return over the long run.
If you withdraw from your savings account in any way (such as a loan to yourself), the insurance company will charge you administrative fees, penalties, and other charges, and you’ll pay a tax penalty, which will eat into any earnings you’ve made on your savings.
For more information, please contact me. I will be happy to help with whatever questions you have. www.rgwealthsolutions.com +6011-51565649
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