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Tom Meaglia, ChFC®, AEP®,

CLU®, CRPC®, MSFS

Chartered Financial Consultant

Investment Advisor Representative

Chartered Retirement Planning Counselor

CA Insurance Lic. #0567507

 

Meaglia Financial Consulting

2105 Foothill Blvd., #B140, La Verne, CA 91750

 

Toll Free: 800-386-3700

Bus:         909-593-6105

Cell:         818-681-8600

Fax:         909-593-6120

 

Email: tom@meagliafinancialconsulting.com

Website: www.meagliafinancialconsulting.com

November/December 2026

A Case for Whole Life Insurance Now

Term or whole life insurance symbol. Concept words Term life insurance or Whole life insurance on wooden blocks. Beautiful grey background. Business term or whole life insurance concept. Copy space.

Will the Federal Reserve lower the federal funds rate this month? Probably not at the top of your mind—but it matters if you're deciding whether to buy whole life insurance.


Understanding how federal interest rates affect whole life insurance can help you make better policy decisions. Whole life insurance provides a death benefit and accumulates cash value, funded by a portion of your premiums. This cash value grows at a guaranteed minimum rate, though that rate and any additional returns are influenced by changes in the federal funds rate, affecting how much your cash value earns over time.


When Rates Go Up
When rates rise, borrowing and spending become more expensive for consumers, so fewer people may purchase new life insurance policies. Existing policyholders might surrender their policies because of higher premiums or better returns elsewhere. Insurers may respond by offering incentives or adjusting policy terms that affect the cost of new policies.


A fixed-premium policy lets you lock in that lower premium for life, while still delivering the same portfolio-hedging and retirement planning benefits that a whole life policy offers in any economy.


When Rates Go Down
Conversely, when the Fed lowers interest rates, returns on the cash value portion of whole life insurance policies usually decline because insurers invest in interest-rate-sensitive products. Lower rates mean your cash value may grow more slowly, directly tying its growth potential to the rate environment.


But remember, whole life insurance isn't primarily about cash value growth. Its guaranteed death benefit provides peace of mind regardless of market fluctuations. If you're treating the policy mainly as a savings vehicle, interest rates matter more; if your priority is providing for loved ones, fluctuating rates are less critical.


Your Needs
Assess your current and future whole life insurance needs and make it a habit to review existing policies as federal interest rates change. Consult your trusted professional to ensure your insurance aligns with your financial goals, protects your loved ones, and takes advantage of changing economic conditions.


The federal funds rate is the interest rate at which banks lend reserve balances to one another overnight. It serves as a benchmark for other interest rates in the economy. The Federal Open Market Committee (FOMC) of the Federal Reserve sets it to influence monetary policy and economic activity.


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Thomas Meaglia is an Investment Adviser Representative of Coppell Advisory Solutions LLC, dba, Fusion Capital Management, a registered investment adviser that only conducts business in jurisdictions where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting.
Insurance and annuity products are not sold through Fusion Capital Management. Fusion does not endorse any annuity or insurance product, nor does it guarantee any insurance or annuity performance. Annuity and life insurance guarantees are subject to the claims-paying ability of the issuing insurance company. If you withdraw money from or surrender your contract within a certain time after investing, the insurance company may assess a surrender charge. Withdrawals may be subject to tax penalties and income taxes. Persons selling annuities and other insurance products receive compensation for these transactions. These commissions are separate and distinct from Fusion's investment advisory fees.
Meaglia Financial Consulting and LTM Marketing Solutions, LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Marketing Solutions, LLC, an unrelated third party. Articles are not written or produced by the named representative.

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