JonasInsuranceAdvisors.com Encouraged Readers to Consider Life Insurance for Its Insurance Value, Rather than Cash

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Following a September 6th Market Watch article, titled, “Funding Retirement With Life Insurance? Be Wary”, JonasInsuranceAdvisors.com encouraged readers to consider life insurance for its preparatory benefits rather than its potential cash value.

Jonas Insurance Advisors strongly encouraged readers to avoid considering life insurance for its potential cash value, instead focusing on its properties as insurance to ward off financial stress or ruin following the death of a loved one. This urging came on the heels of Market Watch’s September 6th article titled “Funding Retirement With Life Insurance? Be Wary.” The article discussed the habit of some families to regard life insurance as more than an assurance of funs after the death of an income generator, for some policies’ ability to act as a source of cash and loans.

Dan Moisand’s abovementioned article was a result of a question sent in by a reader, considering the possibility of purchasing a life insurance policy to act as a source of cash after retirement. Moisand, though he acknowledged the ability of life insurance policies to act in this manner, cautioned his reader against purchasing life insurance for a cash pool after retirement, both because these types of life insurance typically boast large premiums, and because although many agents will assure potential clients that the money paid to premiums go to the cash pool, very little of the overall premium amount actually does, resulting in the need to pull out loans with the insurance company. Charges are also assigned to policy holders when they decide to withdraw funds from the account.

Dan Moisand’s article has merit. Jonas Insurance Advisors urged readers to heed Moisand’s warnings. Although some life insurance policies do accrue a cash value and can act as a source of funds at any point in the insured’s life, these policies are typically quite expensive, and continue to expand as age increases and health decreases. Because, as Moisand revealed, these policies typically devote very little of the monthly premium to the cash value of the policy, treating life insurance policies as liquid cash may prove an ineffective method of saving for retirement. Though term life and no exam life insurance do not boast the same cash value opportunities that whole life insurance policies do, they are able to provide sufficient funds in the event of a loved one’s death. Jonas Insurance Advisors believes that one should educate themselves by reading up on life insurance. Whether purchasing term, whole, or no exam life insurance, consider the actual purpose of life insurance as a source of income replacement upon the death of an income generator, rather than a cash pool.

Dan Moisand is a well-known and well-respected financial representative based in Maitland, Florida. He writes for a multitude of financial publications, including Market Watch. Moisand has won numerous awards in his profession, including being named one of the 15 transformational advisers of the financial industry.

JonasInsuranceAdvisors.com urged readers to regard life insurance policies as sources of income replacement in the face of the death of a loved one, rather than a potential source of cash flow throughout life or following retirement. Though many insurance policies boast such services, the benefits are often incorrectly identified; the total premium amounts are rarely sent to the cash pool that is supposed to accumulate, the majority instead being sent to pay agents and policy underwriters. Insurance policies are designed to replace income, rather than generate it. Treating them as such will, in the end, pay off more effectively than cash-accrued policies.

About JonasInsuranceAdvisors.com: JonasInsuranceAdvisors.com is a site designed to offer news and articles regarding personal finances and money management, as well as lifestyle advice as it relates to finances.

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