If you have money in securities, you’ve probably done pretty well during the prolonged bull market. While the stock market has performed solidly over the past few years, no one knows for sure how long this will last. Like most people, you would probably like to see your portfolio and legacy grow for your loved ones, but as your portfolio’s value gets larger, you may find yourself more averse to risk. The good news: There’s a way to use your gains to ensure that your goals are met.
Have you considered life insurance?
Life insurance? Really? Yes, there are many reasons why using some or all of your gains in the securities market to purchase a life insurance policy can be a smart way to protect your interests. Let’s take a look:
Protect your loved ones with the gains you made.
When you purchase a permanent cash value insurance policy, you get a significant death benefit should something happen to you, and a vehicle for continued cash value growth. Let’s take whole life, for example. With a whole life policy from New York Life, your death benefit is guaranteed as long as you pay your premium, and your cash value will continue to grow with each premium payment you make. And your policy is eligible to receive dividends1—something New York Life has paid to participating policy owners for 163 consecutive years.
The bottom line? Your money continues to grow in a safe, guaranteed life insurance product, your loved ones will be protected, and you can reduce the exposure of recent securities gains to downturns in the market, all with one decision.
Don’t mind some risk?
Even if you feel that it's worth taking some risk for the potential of a larger reward, life insurance can still be the answer. A variable universal life policy also gives you a death benefit, but instead of the fixed-income-type cash value you get with whole life, you can choose “Investment Divisions,” which provide a selection of funds in which to place your money. Our policies offer clients an extensive variety of Investment Divisions to choose from, covering a wide range of risk tolerance. These policies are not eligible to receive dividends, and you can lose cash value in the event of a market downturn since they are securities based. They have additional fees and expenses associated with the product. But they do provide a death benefit, as well as the potential for market-style growth.
Have we mentioned taxes?
Whether you choose whole life or variable universal life, the potential growth of your cash value is tax deferred, and your death benefit is paid to your loved ones generally free of federal income taxes.
Once your policy has accumulated cash value, you can borrow that money without the hassle you’d get when borrowing from a bank or other lender. There’s no credit check, and no questions are asked. That’s real money you can use to fund a college education, purchase a new home, or even pay for expenses in retirement if your insurance needs decrease in retirement. Please note that any loans not repaid will lower your cash value and death benefit, and loans involve interest payments.
And so much more…
Many of our policies can be customized to suit your specific needs. From premium payments to additional riders, a permanent cash value insurance policy is a guaranteed way to protect your assets and your loved ones—and we have policies to fit almost any budget.
Contact your New York Life agent or NYLIFE Securities registered representative to learn more. He or she will be happy to review your options and help you find a policy that fits your needs. Don’t have a New York Life agent, yet? Fill out the “Talk it through with an expert” form on this page, and we will have an agent in your area contact you.
1Dividends are not guaranteed