Cash Value Life Insurance

Cash-Value Life Insurance

Cash value life insurance is a permanent form of life insurance that includes a death benefit component and a savings component.

Cash value savings is accessed in many ways; the cash value can be withdrawn from specific types of policies. Withdrawals are tax-free to the extent they don’t exceed the total amount of premiums deposited into the policy. However, withdrawals can have the effect of decreasing the death benefit amount.

To get more details on how you can benefit from a cash value life insurance policy, contact us today! Our experienced agents will help you find the best option for you.

Whole Life Insurance

Whole life insurance covers you for as long as you live. To receive the death benefit, you must pay the same amount of premium for a specific period. A whole life insurance policy is kept in force for the rest of your life, regardless of how long you may live. This type of insurance provides life insurance coverage with a savings feature.

When you opt for a whole life insurance policy, the insurance company puts part of your insurance money in a high interest bank account. With every premium payment your cash value life insurance increases. The savings element of your policy builds up your cash value on a tax-deferred basis. The presence of guaranteed cash values makes a whole life insurance policy worthwhile because you can borrow against your cash value or surrender your policy to get the cash value in hard cash.

Another option is to participate in the surplus of your insurance company and receive the dividends annually; this allows you to choose to either get your dividends in cash or let them accumulate interest. You may also use your dividends to reduce your policy’s premiums or buy additional coverage.

Whole life insurance is made to fulfill an individual’s long-term goals and it is important that you keep it in force for as long as you live. Whole life insurance is highly suitable for long-term responsibilities like a surviving spouse’s income needs and post-death expenses.

For more information on whole life insurance policy options, contact us today!

Universal Life Insurance

Universal Life Insurance is also termed “adjustable life insurance,” because it offers more flexibility compared to whole life insurance. A policy holder has the liberty to reduce or increase his/her death benefit and pay premiums at any time and in any amount (subject to certain limits) after his/her first premium payment has been made.

With a universal life insurance policy, you can increase the face value of your insurance coverage. However, to qualify for this benefit, you will be required to pass a medical examination. Similarly, you may decrease your coverage to a minimum amount without surrendering your policy. If you go this route, surrender charges may be applied against the cash value of your policy.

When it comes to the death benefit, you have two options: a fixed amount of death benefit or an increasing death benefit equal to the face value of your policy, plus your cash value amount.

You have the option to change the amount and frequency of premium payments in your Universal Life Insurance policy; you may increase your premiums or pay a lump sum according to the specified limit in the policy. A part of your premium, minus the cost of insurance is put into an investment account and the interest therein is credited to your account. In this way, the interest grows on a tax-deferred basis, which increases your cash value.

Universal life insurance offers all-round protection to your loved ones, thanks to its security, flexibility and variety of investment options. In times of low liquidity, you can alter your premium payments or may even withdraw from your cash value fund. In addition, you can increase or decrease the face value of your insurance as per your circumstances.

For more information on whole life insurance policy options, contact us today!

Indexed Universal Life Insurance

Indexed universal life (IUL) allows the owner to allocate cash value amounts to either a fixed account or an equity index account. Policies offer a variety of well-known indexes such as the S&P 500 or the Nasdaq 100. IUL policies are more volatile than fixed ULs, but less risky than variable universal life policies because no money is invested in equity positions.

IUL policies offer tax-deferred cash accumulation for retirement while maintaining a death benefit. People who need permanent life insurance protection but wish to take advantage of possible cash accumulation via an equity index might use IULs as key person insurance for business owners, premium financing plans or estate-planning vehicles.

Let Us Help You!

You’ve Got Options! Why do-it-yourself when you could talk to a professional insurance agent? Option Insurance Group agents are licensed, certified and experienced. We are brokers; and that means we represent numerous carriers and plans, which is an advantage for you, because we can offer you more than one option. The best part is it doesn’t cost you anything to use our services! Sound too good to be true? Not really… As insurance agents, we receive commission from the carriers when we help you enroll in a plan, so you can be certain we will be fair and always represent your best interest.

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