answersLogoWhite

0


Best Answer

Some whole life insurance policies are structured such that you can borrow on the death benefit but you much pay it back over time with interest. The interest is yours to keep as part of the total death benefit of your life insurance plan. If you pay your premiums you will be able to borrow up to the death benefit. If you pay your premiums plus additional money, the money you "save" can be invested to grow tax-free. You can borrow this money too and must repay it to yourself with interest. The point is that when you pay premiums for a whole life policy, that money is ultimately going to be your estate's at some point when you die. You are just borrowing on it while alive. If you die prior to paying back the money you borrow, the death benefit of the policy pays off the balance of the loan.

User Avatar

Wiki User

13y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Can you bank on yourself with universal life insurance to build wealth for paying debts and retirement?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

Is the best description of universal life insurance?

purchased for a set premium cost with the option of paying more.


What is the address for paying group universal life insurance premiums?

The Prudential Insurance Company of America PO Box 945623 Atlanta,GA 30394-5623


What are the benefits of having RBC insurance?

RBC insurance offers many other options that are different than most insurance companies. Some include specific retirement funds, insurance for homes, cars, boats, and help with paying off loans.


What are some retirement plans that might help you if you am looking to retire in the next 5 years?

Some retirement plan is going under a bank plan that would help you save per month. A plan would most likely be like paying 50 dollars per month. Other types would be paying for an insurance plan.


What does not paying for health care lead to?

If you have an insurance you will lose it, if you don't have one you will have to pay the bill each time you go to see a doctor yourself.


What happens if you have car insurance and you have an accident?

You call your insurance company and report it. if the accident is your fault, with very minor damage, you would be better off paying for the damages yourself, rather than telling your insurance company and having your rates go up.


Where is a website I can compare car insurance pricing?

You can look in expedia and check on how to compare different prices. They give you a variety of prices from the loswest insurances to the highest. Be wise, the highest paying insurance is usually the best. Ask yourself how much you are willing to pay for the safety of yourself and others.


Does paying car insurance monthly build your credit?

Paying your insurance premiums do no report to any credit reporting bureaus.


What is deductible for?

When you have a deductible in your plan, before your insurance starts paying for the coverage, you have to meet the deductible after which the insurance starts paying its portion.


You hit a car without car insurance?

If You hot a car and you do not have insurance to cover the damages you Caused. You can still meet your financial responsibility and legal obligations by paying for all the damages you caused yourself out of pocket. This is what the financial responsibility is all about.


Does ObamaCare pay for abortions?

No. It's just like before, you have to pay yourself unless you have a insurance paying for it. There are many private funds helping out to pay though and you find them at fundabortionnow.org.


Does paying more for car insurance benefit you if you're in an accident?

Paying more for your insurance doesnt gurantee any better coverage or better protection in an accident.