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Why Should a Trade Professional Consider Whole Life? Two Reasons.
1. Market Complexities and Volatility
Issue/Concern: You know your trade. You know your family. You know your hobbies. And that's about all you want to know.
Whole Life Insurance as a Strategy: Whole life insurance accumulates both guaranteed and non-guaranteed growth elements. These values grow based on both a guaranteed interest rate and a non-guaranteed dividend. It's simple - if you die, your family is protected via the income tax-free death benefit. If you live, the cash values can be used to generate retirement income.
2. Retirement Savings & Retirement Income
Issue/Concern: Your employer may offer a retirement plan, but you don’t trust him. If you own your own business, your accountant may have told you about an IRA or SEPP, but you couldn't understand him.
Whole Life Insurance as a Strategy: Whole life insurance can do two things for you: (1) protect your family and (2) provide a competitive, tax-favored financial product that can create significant values for your retirement. The fact that a portion of each premium payment is saved and grows inside the policy also helps with not having to think about sending in checks, making deposits, etc. The flexibility also allows you to take withdrawals/loans** before retirement. It's a simple, straightforward strategy to protect your family and provide retirement savings for you.
This publication is offered for the purposes of education and information only and should not be considered tax or legal advice. For more information on your specific situation, please consult your legal or tax advisor. Neither Guardian, nor its subsidiaries, agents, or employees provide tax or legal advice.
**Policy benefits are reduced by a loan, loan interest and/or withdrawals. Dividends, if any, are affected by policy loans and loan interest. Withdrawals above what is paid into the policy may cause ordinary income taxes to be paid on the gain portion of the policy. If the policy lapses, any withdrawals or loans considered gain in the policy may be subject to ordinary income taxes. If the policy is a Modified Endowment Contract (MEC), any loan and any distribution is considered a withdrawal. These withdrawals are distributed as gain first and subject to ordinary income taxes. If the insured is under 59 1/2 the gain portion of the withdrawal is subject to a 10% tax penalty.
