5 good reasons why whole life can be good for your portfolio.



Whole life insurance is a powerful financial tool with a wealth of benefits for you and the important people in your life. But as a third party study recently concluded, it can be good for your portfolio as well. Here are five reasons why you—and so many others—may want to add a healthy dose of whole life insurance to your financial portfolio.

  1. Protect your family—and their future. First and foremost, whole life insurance is about protecting the people who rely on you. It offers death benefit protection that can help replace your income and keep your family going in case you pass away.  What’s more, whole life insurance is an effective way to leverage your money. After all, how else could you give them $250,000 in protection, for just $261.02 down each month? 1
  2. Pursue competitive returns and less risk.You worked hard to build up a portfolio—so the last thing you want is to put it at risk. A whole life policy can help with that—as a Morningstar Investment Management study recently found. The study, which was commissioned by New York Life, found that by replacing just 20% of a portfolio’s traditional fixed income investments (bonds or bond funds) with whole life insurance, you may be able to produce similar returns with potentially much less interest rate risk. 2,3
  3. Replace your human capital. Chances are you still have a lot of money to earn. And your portfolio growth is highly dependent on future contributions. But where will that money come from if you are no longer around? Whole life insurance is a cost-effective way to replace your “human capital” which consists of wages, benefits, social security, and any other unrealized forms of compensation you would have received as a result of your labor.
  4. Safeguard your retirement assets.

    Since whole life policies are guaranteed to build cash value over time, you have a valuable resource that can help you pay for big-ticket items like a new home or business. But you can also use this same pool of money to protect your retirement assets and supplement your income during down markets. Instead of selling off portions of your portfolio when prices are depressed, you can use your policy’s cash value as a stop-gap measure until your other assets have time to recover. 5
  5. “Reinvest” your dividends.One of the benefits of purchasing whole life coverage from a mutual company is the fact that you will be eligible to receive dividends. While not guaranteed, New York Life has awarded dividends for 163 consecutive years so our policy owners are used to enjoying the extra value they provide. You can take your dividends in cash, use them to pay future premiums, or—much like stock dividends—use them to purchase additional coverage (paid-up additions) which in turn, gives you more death benefit protection, more cash value, and more dividend earning potential year after year.

For more information, contact New York Life Partner Danielle Goslin at 956-412-4949 or dmgoslin@ft.newyorklife.com.