Whole Life Insurance and Segregated Funds: The Perfect Insurance Combination?

A lot of influential individuals recommend buying term insurance and investing the difference in Mutual Funds. I take a different approach; I prefer to buy Dividend Paying Whole Life Insurance and put some money in Segregated Funds.

Why I Think Whole Life Insurance Is Superior To Term Insurance

I know you’re busy, so my goal is to keep this post short, if you want more information, please contact me; I’m a registered Insurance Agent in Ontario, Canada, and I can help you with all your insurance needs; I work with a big team, who specialize in different area’s of insurance and I will personally make sure you’re well taken care of.

The reason why Whole Life insurance, in my opinion, is a better option than term insurance is because it’s life insurance that covers your WHOLE LIFE, whereas term insurance is rented insurance. Unless we’re talking about term-to-100 insurance, all term insurance products are RENTED insurance and have expiry and renewal dates. 

Term life insurance also does not offer living benefits, whereas whole life insurance offers you the ability to save money within the insurance plan, as well as the ability to borrow money from the insurance company, using your whole life insurance policy as the collateral, and the best part of whole life insurance is that as long as you pay your contractually agreed on insurance premiums, you’ll never have to worry about your monthly or annual payments ever going up.

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Whereas with term insurance, the older you get, the more expensive your insurance policy gets, making matters worse with term insurance; once you reach 85 years old, you’ll no longer qualify for term insurance, whereas with whole life insurance, you never have to worry about qualifying for insurance ever again.

Why I believe Segregated Funds are Superior To Mutual Funds

What is a Mutual Fund

 

A mutual fund typically focuses on specific types of investments. For example, a fund may invest mainly in government bonds, stocks from large companies or stocks from certain countries. Some funds may invest in a mix of stocks and bonds, or other mutual funds.

What is a Segregated Funds?

A segregated fund or seg fund is a type of investment fund administered by Canadian insurance companies in the form of individual, variable life insurance contracts offering certain guarantees to the policyholder such as reimbursement of capital upon death.

Segregated Funds and Mutual Funds are very similar; the difference between the two is that Segregated Funds are INSURANCE products, and Mutual Funds are investment products.

Insurance products provide INSURANCE from financial loss; investment-based products do not provide insurance from loss. This is why I recommend Segregated funds to my clients who like set-it-and-forget-it investments FOR THE LONG TERM.

Why Do I believe Whole Life Insurance and Segregated funds are the Perfect Combination?

Both Segregated Funds and Whole Life Insurance products are typically more expensive than term insurance and mutual funds, but as the old saying goes, you get what you pay for.

I personally like having the best, and so I don’t want to be disingenuous to my clients and not recommend the best for them; segregated funds typically have higher management fees than mutual funds,; if the stock market crashes, at least 75% of your principal investment is shielded from loss. I should add most of the seg-fund companies I deal with offer up to 100% protection.

Whole Life Insurance, look at it like this: no medicals, no more peeing in a cup, no more worrying about “Will I qualify for life insurance? “It’s called whole life insurance for a reason, and because the insurance company knows you’ll be sending them money for your whole life, they offer whole life insurance plans that LIVING benefits.

The sooner you purchase your whole life plan, the faster you can start enjoying the living benefits; also, because it’s a WHOLE LIFE insurance policy, it can also be used as collateral for a loan.

I personally recommend whole-life policy loans if you’re looking to borrow some money, but you can also use your whole-life policy as collateral for a loan from a financial institution. 

WholeLife Insurance and Segregated Funds are both my favorite insurance products, and that’s why this website is dedicated to those two insurance products.

Call or text Romone for more information

Contact Romone: (416) 705-0892
You can also use the contact form for more information.