Whole life insurance is not for everyone. But it is a solution for a lot of people.
Whole life insurance is an investment in the security of you and your loved ones in the event of your eventual death. It offers several other benefits in addition to the lifelong protection of your family, no matter how old you become.
You may opt to buy life insurance to cover business debts or a mortgage should your family lose the financial security of your income whether you’re the head of the household or not. But these typically are not reasons for a whole life.
WHAT EXACTLY IS A WHOLE LIFE INSURANCE POLICY?
Whole life insurance is a type of permanent life insurance which covers the individual for their entire life.
Also known as cash-value life insurance, it includes both a death benefit which is paid to your beneficiaries and a cash-value portion which helps it to grow. You may be aware of other types such as universal life insurance or term life insurance.
Whole life is a pretty basic type. You’ll have a set premium which will stay stable for the life of your policy.
Like any other life insurance policy, you should choose an insurer who is financially sound to ensure your family is served when the time comes. In this way, purchasing a life insurance policy is a matter of trust.
THE ADVANTAGES OF WHOLE LIFE INSURANCE
The primary benefits of whole life insurance revolve around its cash value.
Part of your premium will go toward the cost of the insurance and its death benefit. The balance is part of its cash value. The money you pay in contributes to this fund, in addition to a stated interest rate by the carrier you choose. In many ways, it’s like having an IRA or 401(k). Like these investments, your cash value earns interest over time which is tax-free.
And the best part of is you can withdraw from these funds tax-free as well—as long as the amount is under the total amount of premiums deposited. You can also opt to take out a tax-free loan against the accumulated cash value. The catch with either way of accessing your funds is it can reduce the death benefit your beneficiaries ultimately receive, or incur taxes if by surrender.
The death benefit offers your family another important advantage.
Generally, your beneficiaries won’t have to pay interest on the amount they receive. It’s one less thing your family needn’t worry about during a trying time. They will most likely not pay taxes on this benefit either. It’s one of the most comforting of the advantages of whole life insurance.
Your loan will still accrue interest which will affect the balances of both your cash value and the death benefit. In addition, you don’t have to pay it back either.
It will also go against the value of the death benefit. You can also use the cash value to pay your premiums, if you so choose. These are things to consider as part of the total costs and benefits of a whole life insurance policy.
If there is enough cash within a policy where the interest gained annually is above your cost of insurance, the policy can also be considered “paid up.” This means you can stop paying in, and the policy will be on autopilot until you pass, where it will deliver the final death benefit.
UNDERSTANDING THE CASH VALUE OF YOUR POLICY
It’s essential to understand the nuts and bolts of how the cash value of whole life insurance works.
First, it is a safe way to save money because it is insulated from the effects of market fluctuations. Second, the cash value accrues interest which is tax-free, with no limit. And third, you may earn dividends as well, as long as the insurer is a dividend paying company.
However, the cash value is a living benefit of your whole life insurance. Its advantages lie in your ability to withdraw or take a loan against it while you’re alive, tax-free. It does not go to your beneficiaries after you pass, however. The insurance company will pay the death benefit to the survivors, in addition to any paid up additions it accrues.
HOW MUCH WHOLE LIFE INSURANCE DO YOU NEED?
There are several things to consider when deciding how much whole life insurance coverage to get.
Part of this figure involves your intentions for whole life insurance. Many people do not buy whole life insurance for the security of a source of income replacement; this is what term is for.
An individual may also buy a term life insurance policy to ensure the family’s debts are handled. These can include the short-term expenses of medical costs and burial. It can also cover long-term needs such as a mortgage or business debts. You may have plans for future dispersal to fund your children or grandchildren’s education expenses.
Whole life is for final expenses, final medical bills, and not much more! It is okay to have a small whole life, and the rest of your coverage as term.
اقتراح بالمنتج للاشخاص الغير قادرة علي العلاج وذلك بتوفير تمويل لهم ... ويفضل بدون نسبه ارباح ....ممكن رسوم معاملة
من وجهة نظري اعتقد انه من احسن الإستثمار هو التأمين بصفه عامه والتأمين علي الوظيفه أو التأمين الإجتماعي عموما هو نظام رأس مالي وإشتراكي في نفس الوقت وما من دوله تجدها عندها نظام تأمينات ومعاشات سواء كانت معاملات حكوميه كهيئات او بنوك.. او خاصه كشركات تأمين او بنوك خاصه إلا وتجدها تستثمر اموال عملائها ( اموالها)في التأمين الاجتماعي تتضاعف الاستثمارات لانه مورد ثابت مع الحياه وبعد الممات
فكرتي هذه جأتني منذ اعوام مضتت بعد متابعه للاسواق الماليه للشركات والتضارب في البورصه العالميه وبالاخص المصريه
Invent an account that has two option for moneysmart option A is for the people that has below 5k salary, and option B is for the people that has 5k up salary.
i think you don't need to cancel the account of members that has below 5k salary because it's unfair, they're already make the effort just to get the card.
How about make something new for all the people that the salary is below 5k, for example easy card that can transfer money to other card or can use to other country or buy online. So the people that has below 5k salary can experience and will not feel outcast. Ofcourse you can make terms and condition and policy or rules and regulations about the card, and make it different than the people that has 5k up salary.
FYI - some company in uae they not give bank card they're just take their salary sometimes hand to hand sometimes in money remittance. And if the people want to buy something online they just use COD and the COD is not good sometimes because you need to pay more when COD.
I suggest to make withdraws on the saving account for small amounts .. for example for every 3000 in the account the customer will get a coupon to enter the withdraw.
For a small amount of premium, which can be payable monthly, quarterly, bi-annual or annually, the insured is covered and provided with pension equivalent to their monthly salary for a max of 3 months (or more depending on the amount of coverage availed) while they go looking for a job after losing their current one due to either:
1. Company is bankrupt and is forced to close
2. Contract expiration.
The insured will then be able to have pension while they are looking for a job.
The premiums will be earning dividends and if within the year the premium is not used, the insured will earn a part of the dividend.
A bitcoin wallet address integrated with the existing account would be very useful and innovative to keep up with the latest technology and to increase income gateways .
As per Government reports, 50 % to 70% of SME loans are rejected by banks, due to lack of a proven record of SME operation or due to insufficient collaterals to secure the loan
There could be a possibility that banks can enable crowd finance for small loans to their customers. A customer could seek funding on their digital bank for a small project, and the funding can be crowd financed by the bank's customers.
The bank could bring their expertise in credit score and underwriting to enable easy lending with minimal fees as the loan is crowd sourced by the bank's customers.
https://www.beehive.ae is a crowd sourcing platform in UAE
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