I'm trying to understand my life insurance more to determine whether I should keep my whole life policy, trade to a different company, or surrender it and buy a term life policy.
I'm trying to look at different investment options and decide if my cash value is better placed in a high interest earning account (which would make it taxable income), remain in my whole life (where it won't be taxed? I think...), or moved to a different whole life policy with a better rate of return.
What I want to know is: Are there policies out there with better rates of return than what I have? My rate is 4.5%. I think it's compounded daily, although I need to get this confirmed.
I read online that you can have a rate of return on your cash value and a rate of return on your death benefit. I don't know if my rate is 4.5% applied to my cash value and 4.5% applied to my death benefit or just to my cash value. (I'll try to find out how it works.)
Can those of you with whole life policies tell me what your rate of return is so I can get an idea of the current average rate? (If you could include your age and policy amount, that would be helpful to.)
By the way, I have no investment experience. I'm just trying to learn and plan for the future. If you start using fancy investment terms, I'm likely to get confused.
I'm trying to look at different investment options and decide if my cash value is better placed in a high interest earning account (which would make it taxable income), remain in my whole life (where it won't be taxed? I think...), or moved to a different whole life policy with a better rate of return.
What I want to know is: Are there policies out there with better rates of return than what I have? My rate is 4.5%. I think it's compounded daily, although I need to get this confirmed.
I read online that you can have a rate of return on your cash value and a rate of return on your death benefit. I don't know if my rate is 4.5% applied to my cash value and 4.5% applied to my death benefit or just to my cash value. (I'll try to find out how it works.)
Can those of you with whole life policies tell me what your rate of return is so I can get an idea of the current average rate? (If you could include your age and policy amount, that would be helpful to.)
By the way, I have no investment experience. I'm just trying to learn and plan for the future. If you start using fancy investment terms, I'm likely to get confused.