Recently read that Pizza Hut is going to introduce driverless vehicles that will deliver pizza right to your door.
I can’t imagine what will happen to the poor old pizza delivery dood but I can imagine faster deliveries and fewer hurt feelings over tips (or the lack thereof).
Got me thinking about how whole life insurance is sort of like a driverless vehicle. Yes there is someone at the helm, so to speak, but almost everything runs on autopilot once the policy is set up.
The death benefit is there for your beneficiaries when you die and the policy’s cash value grows each and every year regardless of what happens out there in the economy.
If you get tired of making premiums after a few years, you can make the policy pay for itself. Or… keep paying premiums out of pocket.
It really doesn’t matter.
The thing will keep working either way.
Why is this mucho importante?
For one simple reason: stability.
When I see an investment portfolio swing from +20% to -2% back up +4% percent over the course of 3 years, that’s a good sign that savings plan is pretty fragile if most or all of a person’s savings is gaining and losing that much in such a short period of time.
It’s worse when a person is trying to draw income off a portfolio like that.
A savings plan that’s guaranteed to increase each year prevents such nonsense.
Of course, you can switch off the “cruise control” and invest outside the policy’s cash value if you find something more “exciting.”
So basically, your return on your savings is the greater of the policy’s conservative return or… whatever investment you find out there in “the wild.”
And… when your time finally comes (as it must for all mortals)… your beneficiaries get a nice bump on your savings through the death benefit.
If that sounds interesting to you