MONDAY, OCTOBER 2, 2023
Life insurance is a complex field with many different products to choose from. If you’re just starting to consider what coverage you might need to protect your family and loved ones, it’s easy to feel overwhelmed by all your options. Explore cash value life insurance and see if this policy is right for you.
What is Cash Value Life Insurance? 
Most life insurance policies involve a standard arrangement in which a certain amount of money pays out to the beneficiaries upon the death of the policy holder. This amount is usually fixed, but it may increase with time as well. Cash value life insurance policies include a separate savings account that holds a part of each premium. That cash value grows over time, but it’s accessible to the policy holder whenever it’s needed most. In fact, you can use the cash value to pay for the policy if there’s a financial emergency.
Who Can Benefit the Most from This Type of Life Insurance?
Anyone who might need to borrow money in the future may want to consider a cash value life insurance plan. You’ll pay a higher premium per month or year, but part of that money goes into a savings account you can access during your life. With a modest gain in interest, you’re saving without the effort of planning or dealing with other bank accounts. It’s also easier to get higher policy amounts when you choose a cash value plan since your deposits help balance out any risk to the insurance provider. If you’re older or suffer from existing health conditions, you can access a wider range of policy values and premiums by considering cash value plans.
When is Cash Value Life Insurance Not the Best Choice?
The money saved in the cash portion of the plan is only accessible to the policy holder. When they pass away, that amount is generally not included in the payout to the beneficiaries. You’ll need to plan to withdraw and use that money, or at least invest it back into the insurance premiums, as you get older. Many people close out these kinds of insurance policies and cash out at a certain point to buy other fixed policies.
If you’re still not sure which life insurance solution is right for you, talk to an experienced agent. Getting advice based on your situation can guide you to the right insurance products.
No Comments
Post a Comment |
|
Required
|
|
Required (Not Displayed)
|
|
Required
|
All comments are moderated and stripped of HTML.
|
|
|
|
|
|
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only.
It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional
in your state. By using this blog site you understand that there is no broker client relationship between
you and the blog and website publisher.
|