EQUOTE Releases New Web Site Including Live Call & Insurance Tips; Investors Take Fresh Look at Life Insurance

    SAN DIEGO, CA, March 28, 2012 /24-7PressRelease/ -- Most financial experts consider life insurance one of the cornerstones of a solid financial foundation. In recent years, term insurance, with cheaper premiums and shorter terms, has enjoyed preference over traditional whole life policies. However, increased volatility in stock and bond markets and miniscule returns on bank savings accounts have many financial planners turning once again to whole life insurance as an investment vehicle.

Guaranteed Return: One of the most attractive aspects of life insurance as an investment is the fact that many policies guarantee a minimum return (often three to five percent). It's important to read policy terms carefully, though, as some policies which allow for greater return may not guarantee a minimum return. With many investors suffering huge losses through traditional investments such as stocks and bonds, people are looking for more reassuring investment alternatives.

Other financial planners point out that the small return requires a large investment over a long-term to reap full benefits. They further suggest that the financial markets should improve over the long run to provide a better return. Ron Herrmann of the Hartford says "insurance should be used as insurance". Especially since many people borrow against their whole life policies, significantly reducing appreciation in value.

Tax Free Loans: One attractive aspect of the whole life policy is the ability to borrow against it. Interest rates are reasonable; credit problems aren't an issue, and there are no tax penalties such as one would incur if borrowing against an IRA. And there's no pressure to repay the loan--ever. But the very facts that make policy loans so convenient for borrowers also serve to undermine the effectiveness of the policy as an investment. The policy can't build value if returns are used to offset accruing interest on the loan. The best strategy to avoid problems is to treat "yourself" like any other borrower. If credit is a problem right now, is it wise to borrow? It's difficult to borrow your way out of debt! Create a repayment plan and stick to it.

Tax Free Benefits to Heirs: Another attractive aspect of low cost life insurance online is that the proceeds pass to heirs free of taxes. Thus a whole life policy is an effective way to transfer assets within the family without incurring tax consequences. A qualified financial planner can help you develop an insurance strategy that will accomplish your goals.

Maximizing Returns on Investment: One way to maximize returns if using a whole life policy as an investment vehicle is "overfunding"--paying more than the required premium, either by making larger periodic payments, or with lump sum supplements. Even Herrmann agrees that this could be a good strategy over the long term (ten to fifteen years).

Long term compounding is key to the strategy of using insurance as an investment. But for cautious investors who believe the traditional markets will take a long time to rebound in the current economy, it may make sense to take another look at whole life insurance, both as an investment, and as preparation for the inevitable.

About EQUOTE
EQUOTE, first founded in 1998, provides complete packages for low-cost life insurance products and is an A+ rated company with the Better Business Bureau in San Diego and Imperial Counties. EQUOTE has a commitment to excellence working only with insurance providers who have a rating of A or higher. For ease of use of consumers, the company has launched a new interactive web site with tools, tips and information for shoppers as well as growing its call center.

For more information please visit: http://www.equote.com

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