Term Life Cash Value Policy Indiana IN
Reader’s Question:
I’ve heard about “cash-value”, do you think my term life insurance policy here in Indiana also has one?
Dante
Fort Wayne, IN
Unfortunately, your term life policy there in Indiana would probably not have a “Cash-Value’ feature. Like all other forms of term life insurance, your policy is considered as a temporary life insurance, the purpose of which is to provide an individual life insurance protection within a certain span of time only (usually ten years, it depends on what you choose and what is available). For those not aware, you may be given the option to renew the policy as you wish after the coverage period. This kind of life insurance policy is priced lower than a whole life or permanent life insurance policy but may become more expensive if you renew after the first “term” is up.
Also, for those not familiar with the term, “Cash-Value” is a built-in feature of a whole life insurance policy. The reason why so many whole life or permanent life insurance premiums are more expensive, compared to term life, is because part of the money that you pay goes into a form of savings account. This money is accumulated and may be used by the life insurance company for investment purposes, in exchange your money is guaranteed to earn interest and grow in the long run. Income from cash-value policies are tax-deferred so it is a good way to protect wealth as well. You may also be given the option to withdraw money against your cash-value up to a certain extent.
Tags: cheap term life insurance, life insurance, advise, life insurance information
Universal Life Insurance Question Indiana IN
Reader’s Question:
Would a Universal life insurance policy be a good investment should I decide to get a policy here in Indiana?
Adam
Bloomington, IN
Whether or not a Universal Life Insurance Policy would prove a good investment for you would depend on how old you are and your specific goals or needs. It would be safe to say that universal life insurance has its own market and it may not be sensible for everyone to invest into it. If you are looking into a policy that would combine the benefit of life coverage and an income-earning, tax-deferred savings feature then a universal life insurance plan would be the ideal choice.
Universal life insurance would best work when it is allowed to grow over a period of around 15 years. Your premiums are placed into a cash value account which is similar to a savings account (which is pooled into a bigger fund, along with other policyholders money) and is used by the universal life insurance provider as capital for investment purposes. Managed well, eventually you may no longer need to make regular payments on your premiums since the interest your policy earns would be enough to cover for these. Again, it is tax-deferred which is a very attractive feature for many people.
Just life with any other major investments, this particular kind of life insurance policy is meant to be maintained for the long-run and you will only realize its full potential after the said fifteen-year time period that you have to keep it there in Indiana.
Tags: universal life insurance, life insurance agent, advise, life insurance information
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