Whole Life insurance policies generally provide premiums, which are guaranteed to never increase, and lifetime protection. The initial premiums are much higher than most Universal Life or Term Life policies.
The best way to determine if a Whole Life policy is a good investment, is to calculate the policy’s internal rate-of-return. (otherwise known as its IRR) The IRR calculates the annual return of a given investment. Investors want to have the highest possible return of investments. However, with interest rates at historical lows, it is extremely difficult to generate a meaningful rate-of-return risk-free. Many Non-participating Whole Life insurance policies offer guaranteed premiums and guaranteed pay-periods. Therefore, the only variable is when the beneficiary will receive their tax-free benefits.
Whole Life allows policy holders to protect their family in the short run and enjoy the benefits of a risk-free long-term investment. Returns rarely fall below 5% and best of all, the money is paid out tax-free.
To calculate the internal rate-of-return on a Whole Life insurance policy, please visit our Internal Rate of Return Calculator or, for more details, you can contact us at: 1-866-899-4849, or visit our Whole Life Insurance Instant Quote Page.
