What exactly is cash value life insurance and how does it differ from term life? Also called permanent life, cash value life insurance covers as long as you pay your required premiums. As the name implies, it builds up an investment value you can access whenever you need cash. While term life only lasts for a specified period of years (usually 10, 25, or 30), cash value life insurance lets you borrow against the value in your policy at any time.
Some people choose cash value life insurance because it’s more affordable. It costs less than term life. In addition, there are no premiums to pay for. The insurance company invests the money in a variety of options so it grows tax-deferred until you withdraw it.
How much should you be saving for your retirement? If you’re not currently saving at least 10 percent of your pay check, talk with your employer about giving a supplement to your retirement plan. Also, if you’re not working, look into ways to build a nest egg for your retirement. You’ll need a steady income to support yourself once you stop working, but you don’t need a large sum of money right away. Save slowly for retirement over the next ten years or so.
What kind of health problems do you have? Some people are more at risk of death due to heart disease, while others may have more costly medical problems. To determine what type of coverage you need based on your health problems, talk with a licensed insurance agent who can get you started on the right path. Once you understand the level of coverage you need, you can begin to evaluate your options for cash value life insurance policies. You can schedule a free consultation now!
The premium you will pay for cash value life insurance policies is based on a number of factors. If you are healthy and you carry a policy that is at least ten years old, you are likely to get a good rate. You can also opt for an accelerated pay out a benefit plan, which allows you to get some instant relief from your premiums and build an emergency fund while you are young and healthy. These plans tend to be more expensive than other insurance policies, but they allow you to take advantage of rising rates without waiting. In most cases, you will lose access to your benefit if you become ill or die during the defined benefit period of the whole life policy.
Your age is one of the most important factors in deciding your cash value life insurance premium. People younger than sixty-five tend to pay more for this type of coverage than people of all ages. Health and long-term conditions are not considered when offering cash value insurance premiums, so anyone regardless of age should be able to get some cash value coverage. If you are young and healthy, you may want to consider an accelerated benefit plan to get instant access to your premium savings. Find out more at https://paradigmlife.net/blog/is-cash-value-life-insurance-worth-it/.
Go to https://www.youtube.com/watch?v=67iiYbGJoVk for Life Insurance 101.