Personal Finance

7 advantages of whole life insurance in times of high inflation 

New York Life | December 12, 2022

Learning more about your financial products and services, such as your insurance policies, is a useful step to take during times of high inflation. Ask yourself, How can I protect the value of my money?

New York Life offers different insurance options so you can choose the path that is right for you. Whole life insurance is one of these options. These are some of the main benefits it brings: 

Security for life

Whole life insurance secures lifetime protection – the insured person is covered for their whole life, as long as premium is paid when due. That’s peace of mind for your entire future, which is especially valuable in turbulent times.

Taking the long view can help – and evidence from a recent New York Life Wealth watch survey shows that 65 percent of adults report that as a result of inflation, they are cutting back on short-term spending to stay on track with their long-term financial goals.

Building cash value

One of the key benefits of owning a whole life insurance policy is a cash value component that accumulates over time. Cash value growth is guaranteed*, and the money can be accessed when needed. You can use it, for example, to help pay for a child’s college tuition, or as an additional source of retirement income if the insurance needs decrease in the future. Of course, accessing cash value reduces death benefit and available cash surrender value.

Being able to budget

Whole life insurance premiums are guaranteed never to increase. This gives you the advantage of being able to budget accurately. In times of uncertainty, many people want this security. You don’t need to worry about rising premiums – even during times of high inflation. There are also options for how often you want to pay – monthly, quarterly, or yearly.

Eligibility for dividends

New York Life Whole Life policy owners are eligible to receive dividends. Though dividends are not guaranteed, New York Life has paid them every year since 1854. When a dividend is awarded, you have options – you can take it in cash, use it to help offset your out of pocket premiums, or use it to buy additional insurance that increases your coverage and cash value.

Use your tax advantage

Another benefit of whole life insurance is that it can provide tax advantages. These can help offset the impact of inflation. The cash value component grows tax-deferred, and the death benefit will be distributed free of federal income taxes.

Customize your policy

With New York Life Whole Life insurance, you have the option of adding riders that match your personal circumstances. These provisions, some at additional cost, provide additional benefits. Speak to your New York Life agent about your specific needs. Knowing you have exactly the kind of provision you need may help in uncertain financial times.

Pass on security to your loved ones 

Death benefit protection will help preserve your family’s lifestyle in the case of your death. Beneficiaries typically don’t have to pay federal income taxes on life insurance benefits.

As financial consciousness is raised during this time of high inflation, it brings an ideal opportunity to analyze your life insurance policy and make sure it’s right for you. Whole life insurance provides unique benefits – now and long into the future.  

High inflation rates can create some financial difficulties, for both individuals and the overall economy. At New York Life we are committed to providing useful information to help navigate every situation we can. If you need further insurance and financial guidance in this time of high inflation, connect with one of our financial professionals.

*All guarantees are based upon the claims paying ability of the issuer.


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Media contact

Kevin Maher
New York Life Insurance Company
(212) 576-7937