5 Reasons to Consider Whole Life Insurance

Whole life insurance is a powerful financial tool for you and your family. Here are five reasons why you may want to add whole life insurance to your financial portfolio.

Mother doing paperwork; child in a highchair in the kitchen

Learn more about life insurance

1. Whole life insurance can protect your family and their future.

Whole life insurance offers death benefit protection that can keep your family financially secure in case you pass away, but it’s also a good way to leverage your money. On average, you could obtain $250,000 in protection for just $273.56 each month.1

2. Whole life insurance allows you to pursue competitive cash value growth with that is not subject to market risk.

Whole life insurance has guaranteed cash value growth2 that builds at a steady, dependable pace. That allows it to complement fixed-income investments in your portfolio. New York Life offers the ability to customize your policy by setting a premium-paying period to pay up your policy faster while accelerating cash value growth.

On average, you could obtain $250,000 in protection for just $273.56 each month.¹

3. Set up a replacement for your human capital with whole life insurance.

Your portfolio growth is highly dependent on future contributions. Whole life insurance is a fail-proof way to arrange for the replacement your "human capital" if you’re no longer around to provide for your family. Your human capital consists of the wages, benefits, Social Security, and any other unrealized forms of compensation you would customarily expect to receive in the future. 

4. Whole life insurance is a good solution for retirement and for safeguarding your assets.

Whole life policies are guaranteed to build cash value over time, and this cash value can help you pay for big-ticket items like a new home or launching a business. Upon retirement when your life insurance needs decrease, you can use that money to 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 while the market is down, giving your other assets time to recover.3

Two young brothers playing on the floor

5. Whole life insurance is great for "reinvesting" 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 dividends4, if declared. Many policy owners use their dividends to purchase additional coverage (through paid-up additions) which provides more death benefit protection, more cash value accumulation, and more dividend earning potential. If you prefer, however, you can simply take your dividends in cash or use them to pay future premiums.

Related Articles 

Want to learn more about whole life insurance?

A New York Life financial professional can help determine what’s right for you. 

New York Life Insurance Company is the issuer of New York Life Whole Life. In Oregon, the Whole Life policy form number is ICC18217-50P (4/18). SMRU # 1891275

1 The premium quoted is for a 35-year-old male, rated select-preferred, paying monthly recurring premiums on a Whole Life (AD 117) policy with a $250,000 face amount and no riders. Your premiums may differ. Other rate classes are available. Life insurance applications are subject to underwriting. Premiums are guaranteed for the life of the policy

2 Guarantees are based upon the claims paying ability of the issuer.

3 Accessing cash value will reduce death benefit and available cash surrender value.

4 Guarantees are based upon the claims paying ability of the issuer.