The death benefit guarantees that a certain amount of money/assets you spend and enjoy while alive will then be replaced upon your death. This is your “license” to utilize and enjoy your wealth more fully than you would otherwise.
There is only one financial product in the world that can provide you with a guaranteed death benefit, tax-free growth of equity, no penalties for use, 100% protection from creditors, is not subject to stock market fluctuations, and self-completes in the event of a total disability. That product is Whole Life insurance.
The biggest problem with whole life insurance is that there is a limit to how much you can purchase (based upon age, income, and level of assets). The next problem with whole life insurance is that you must have sufficient health to qualify for it. However, as long as you have an insurable interest in someone who is in good health (i.e. family member, business partner), you can still get the product and make it work for you.
The death benefit of whole life insurance is the most valuable aspect of the product. The payment of the death benefit is not conditioned upon the performance of the stock market or interest rates. The only condition is the payment of the premium, which is the guaranteed level for life. The certainty of the payment of the death benefit causes a major improvement to the efficacy of income-producing and non-income producing assets in retirement. It is the death benefit that guarantees that an amount of money/assets you spend and enjoy while alive will then be replaced upon your death. It is your “license” to utilize and enjoy your wealth more fully than you would have without it.
Whole life insurance builds liquid and accessible cash value, which is guaranteed not only by the insurance company but also by each state’s Life and Health Insurance Guarantee Association. Cash values of whole life insurance are liquid and accessible, without penalty. They grow tax-free (unless surrendered – policy canceled or becomes a modified endowment contract) at a rate of no less than 4% per year. Cash values of life insurance can be used for any purpose, and at any time after the first year of the policy.
Pertaining to where to store six months to one year of income, there is no better place than whole life insurance.