Cash value life insurance can be used as a way to accumulate cash that could be used for specific purposes in the future, such as paying off your mortgage early, funding your child's college education, or funding your retirement. That's because cash value policies have "living benefits" as well as a death benefit. The cash that accumulates is available to you for emergencies and opportunities during your lifetime. This cash accumulation earns a modest return.
Let's take a look at the financial objectives of cash-value insurance:
So when it comes to cash value life insurance, make sure you understand what it is, how it works, and whether or not it is the best option for you. Remember, your primary purpose for buying life insurance is to create an immediate estate for your heirs in the event you die prematurely. Your number one priority is making sure the death benefit is substantial enough to cover the needs and desires of those you leave behind.
If you do decide to borrow against your life insurance policy, it is important to understand how that transaction works and the possible risks to your policy and finances:
Employer-Sponsored Group Whole and Universal Life Policies
You and your spouse may have the opportunity to purchase permanent (cash value) life insurance as an employee benefit. Before you decide to purchase, consider the following:
Who should consider employer-sponsored products?
If you've been rated by an insurance company and need a cash-value policy, or you simply don't want to be bothered with many underwriting requirements, you may have a better chance of securing life insurance with employer-sponsored group whole- and universal life.
Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC. Insurance products are offered through LPL or its licensed affiliates. Premier America Credit Union and Premier America Investment & Retirement Services are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using Premier America Investment & Retirement Services, and may also be employees of Premier America Credit Union. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of Premier America Credit Union or Premier America Investment & Retirement Services. CA Insurance License #0759204, TX Insurance License#1643255.
Securities and insurance offered through LPL or its affiliates are: