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Why is Whole Life insurance a good idea?

Best Answers

Some of the money paid into your whole life policy accumulates “cash value” in the form of a tax-sheltered investment account that the policyholder can borrow against. Insurance companies tout these policies as not only a way to leave a financial legacy to your heirs, but also as a good investment tool. read more

Whole life insurance may be a good idea for wealthy, youngish families Because personal finance is personal, there are (almost) always exceptions to any rule. It’s no different with whole life insurance. read more

On the surface, life insurance sounds like an easy concept to grasp — you pay an insurance company a monthly or annual premium, and upon your death, the company pays out a sum to your beneficiaries. But permanent life insurance policies such as whole life insurance also contain an investment component, and that’s where things can get confusing. read more

So without further ado, here are 8 reasons why whole life insurance is a bad investment. Reason #1: Whole life insurance is undiversified. Diversification is the practice of spreading your money out over many different types of types of investments and different types of companies. read more