What is a Cash Value Policy & How does it work?
Cash value life insurance is a type of life insurance policy that combines a death benefit with a savings component. Part of the premiums paid into the policy goes towards the insurance coverage, while the other part goes into an investment account which grows over time and can be accessed by the policyholder during their lifetime.
Why get a Cash Value Policy?
The growth account within the cash value policy is designed to provide a conservative rate of return, with the potential for tax-deferred growth.
The policyholder can use the cash value in a number of ways including, borrowing against it, withdrawing it, or using it to pay premiums.
The cash value can also be used to pay for other expenses, such as education or retirement.
Types of Cash Value Policies
Whole Life Insurance
Offers a fixed rate of return on the cash value component
Universal Life Insurance
Offers a variable rate of return on the cash value component
Variable Life Insurance
Allows the policyholder to invest the cash value in a range of investment options
What can you expect?
We’ll start by identifying your financial goals and asses your current financial situation.
Then, we’ll review your plan and work with you to make adjustments regularly.
We’ll help you understand where you may be losing money through interest, taxes and fees then develop a plan that considers budget and risk management.
Not sure if it’s fit for you?
Tap the “Learn More” button to explore more information or book a call to ask any questions