There are several forms of life insurance policies offered here in the US but in recent years, cash-value life insurance policies are pretty popular.
But why!?
Before getting into the details about the reasons behind the incessant popularity of cash-value life insurance policies, it would be best that one first understands the definition of this type of life insurance policy.
It goes like this –
A cash-value life insurance policy is a derivative of the permanent life insurance policy. It lasts as long as the policyholder is alive and comes with a feature known as ‘cash value savings’.
More details about this particular variation of insurance policies are mentioned in the sections below –
Things To Keep In Mind About Cash-Value Life Insurance Policies
- Cash-value life insurance policies do not expire after a set term.
- You can borrow money from the insurer against this type of insurance policy you hold.
In case you are already convinced and want to apply for this type of life insurance policy, be sure to go forward only after you compare rates with this cash value life insurance calculator.
If that is not the case and you want more details then read on!
Cash-Value Life Insurance Policy – A Few Insights
- This type of life insurance policy comes with a lot of upsides hence it is no wonder that lots of applicants will go for this variant of life insurance policy in a bid to keep their loved ones and their retirement years secured.
- This type of life insurance policyholder would need to make monthly premium payments that are fixed amounts and cannot be scaled up or down.
- Every premium payment you make will be divided into two portions. One of the two portions will be allocated as the cost of the policy. The remaining portion will be submitted under the ‘cash-value’ category of the policy.
- The policy will come with quite attractive rates of interest on its cash value and the best part, the sum will be exempt from all taxes until it is withdrawn and spent.
Benefits:-
There are several benefits of holding this type of insurance policy and they are as follows –
- You can borrow money from your policy as a living benefit.
- You can get tax exemptions.
- The majority of the insurance companies here in the US offer this form of life insurance policy with reasonable clauses.
- You can also use the money value of the policy you hold to pay for its monthly premiums.
Make sure to compare rates with this cash value life insurance calculator before applying for this type of life insurance policy for the best results.
Conclusion:-
If you reside here in the USA and want to retire in style or ensure that your loved ones are financially secured then you need to have a life insurance policy. With that stated, it is evident by now that applying for a cash-value life insurance policy has many upsides. This is why; it is the best form of insurance policy among the available insurance products offered here in the US. For more details, feel free to consult with a financial advisor today!