Nobody should undermine the role and value of life insurance. This service provides money when they are needed the most by your family members. Life insurance can be used as an inheritance and income replacement. But few people understand how to use some policies as financial tools that can generate additional income.
This can easily be done if you buy whole life insurance or other permanent policies. You should use a whole life insurance policy as an investment and we will tell you how and why.
Whole life insurance is a permanent policy and it is considered a hybrid because it has a savings component and an investment component. Both components will offer tax-free money and benefits. The investment component generates money based on exceeding profit obtained by the company.
The insurer invests a part of the premiums in various market products (mutual funds, bonds) and if they get profit, the company will share a part of the profit with you. You can choose to withdraw the money or you can transfer it in the savings account. Typically, the company chooses to share only the money obtained from the most profitable investment. This can make a policy self-sustainable if the profit covers the premium cost. So, you can be in the very advantageous situation when you are protected by life insurance and you do not have to pay a penny.
You can get money also through borrowing against policy. This feature is unlocked after 5 or 10 years since the policy is active. Although you might be tempted to borrow a large amount of money, you should limit withdraws otherwise the cash value and death benefit will be reduced. For more info, contact a life insurance agent and get free quotes.