Whole Life Insurance as an Investment in Canada
Sunday, February 12th, 2012
With low interest rates on Canadian savings accounts, high personal debt, and a baby-boom generation inheriting money and retiring with dependents , whole life insurance is just the solid protection you may need
It’s 2012 and you are happy to be Canadian – - thanking your lucky stars you are better off than many.
But how do you protect that wealth and ensure it gets passed along with no risk to those who depend on you?
You probably can’t help but wonder if the stock market will hold up, and no doubt wondering if it is worth the risk. So, where do you invest your money to keep it intact, and where do you get a good return?
Now, it’s the return of stable, reliable whole life insurance!
In the early nineties it was Universal Life to the rescue of the budget-conscious. With high interest rates and returns in the market, UL as it is often called had a lure of low premium, high potential cash value, and a payment period that could be shortened. Little did the companies and the agents realize when delivering those policies based on escalating insurance costs that the double whammy would eventually hit. There are still those looking to get out before they get old so to speak. There is still time to remove the wealth that remains in those plans with “yearly renewable, non-guaranteed cost of insurance” and get while the gettings good! And when I say get out if it has yearly renewable term, please get out before an illness strikes and leaves you unable to replace it!
The problem Universal Life policies may continue to experience is the nature of the plan – -it is a variable contract, where the guarantees of whole life plans are lacking. And, with the need to pick your own investment choices with fewer looking safe, UL policies are no longer looking like the proven winner.
So, what type of policy in the whole life market is the best? It will depend on many factors including affordability, but you really cannot go wrong with high guaranteed cash value plans that let the insurance company figure out how they are going to come up with the cash.
Lately, I really like the 20-pay offerings from some of the high cash value, low guaranteed premium players.
The market is vast, and the rates and plans worth looking at can vary with your age, whether you smoke, and whether you want a joint first to die type, and on and on. And, that’s where experience comes in. But not just experience.
The ability to examine the market as a whole with an online whole life insurance rate tool has been very effective.
Please drop me a line or call me at 1.866.856.6799, ext 201.
You can also fill out a contact request, and I will get back to you promptly.
It would be a pleasure to help you secure your family’s wealth!
Craig Ferguson
