Life Insurance with a Cash Value Account Can Help You Save for the Future
Cash value account life insurance provides a death benefit to your beneficiary and a pre-tax way to build savings and investments. Let Morgan Insurance Services help you make the most of your income to save for your future while planning for your estate.
How Life Insurance with a Cash Value Account Works
Each month, you pay a premium on your life insurance. The majority of the premium pays for the policy’s death benefit. This benefit goes to your named beneficiary, such as your spouse. They might use it to pay off your Tampa, FL home or your children’s college.
A portion of the monthly premium goes to the cash value account. Some policies provide a savings account with high-yield interest. Other policies offer an investment account that pays a yield based on an index, such as the Standard and Poor’s. This account requires some time to vest, which typically takes two years. After that time, you can borrow against the balance or use it as collateral for a loan. Some policies allow you to withdraw from the balance, temporarily reducing the death benefit until you repay the funds.
Who Can Use a Cash Value Life Insurance Policy?
Once considered a product for the wealthy, the insurance industry created options for everyone. Many companies now offer this type of policy starting at a death benefit of $75,000. That puts this life insurance into a category that most people can afford.
Choosing a life insurance policy with a cash value account provides you with a pre-tax method of savings to make your Tampa, FL, salary go further. While the IRS does charge tax on withdrawals made before your death, every premium payment you make into your cash value account remains untaxed.
Contact Morgan Insurance Services
Contact Morgan Insurance Services today to learn how to get started with this hard-working life insurance that helps you in two ways. Call or email us to start your policy.
