Buy Whole Life Insurance Arizona AZ
Reader’s Question:
I want to buy a whole life insurance policy. One of the reasons is because of the cash value component. What are the things that I should know about the cash value?
Andrea
Phoenix AZ
Aside from the death benefit, one of the attractive incentives of the whole life insurance policy is the cash value. Unlike the term life insurance policy where the life insurance company pays only after you die, Arizona whole life insurance policy accumulates cash that you can use while you are still alive.
The cash that accumulates is actually not subject to income tax. Aside from this, cash value is guaranteed and can be increased by dividends if earned and paid up addition. You should however note that dividends are not guaranteed. The cash can actually offset the additional cost of permanent policies after a few years even though this type of policy makes you pay more. In case you need cash, you can take a loan or surrender a policy and repay at your convenience including the interest. If your cash is large enough, you can use this to pay off your mortgage. You can also use the accumulated cash to add to your retirement fund.
Tags: life insurance, whole life insurance
Loading ...