Whole life insurance is often referred to as a “bank account on steroids” because it offers many of the same benefits as a traditional bank account, but with added features and benefits.
Like a traditional bank account, whole life insurance allows you to save money and earn interest on that savings. The cash value of the policy grows over time and can be used as a source of financing for various expenses. Unlike a traditional bank account, the cash value of a whole life insurance policy grows tax-deferred, meaning that you don’t have to pay taxes on the money until you withdraw it. And if you withdraw the money to buy, build, or improve a home, you can do so tax-free up to the amount of your investment in the policy.
Whole life insurance also offers a sense of security and peace of mind that a traditional bank account doesn’t. The death benefit provided by the policy can help protect your loved ones in case something happens to you. This can give you peace of mind that your loved ones will be taken care of if something unexpected happens.
Additionally, a whole life insurance policy can be used as a source of financing for various expenses. The cash value of the policy can be borrowed against for things like home renovations, education expenses, and even starting a business. The interest rate on loans from whole life insurance policies is often lower than those of traditional loans from banks or other financial institutions, making it a more affordable option.