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
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