Placing Extra Cash in Your Life Insurance Policy
May 10th, 2010 // 4:00 am @ Andrew Rosenbaum
In the current economic environment, it is difficult to produce a significant return from conventional financial products that offer safety, such as savings accounts and certificates of deposit.
But if you own a whole life insurance policy, you may be able to deposit money using your life insurance contract and gain two important things:
- A return from dividends*, as well as guaranteed cash values that grow tax-deferred each year.
- An ability to leverage your death benefit, because in most situations, every additional dollar added may produce an additional $3 in your death benefit. That gives you an opportunity to create more of a legacy and pass along more income tax-free money to your heirs.
Basically, you’re getting your money to do more than one job.
It will both generate a higher return than what’s available from most financial products today, and significantly enhance your death benefit.
It’s a sensible and secure long-term growth vehicle for extra cash that can be set aside for several years.
So if you’ve worked hard and saved money that you can afford to sit for a while, discuss this option with your financial representative.
*Dividends are not guaranteed and are declared annually by the company’s Board of Directors.
Category : Accumulation v. Utilization &Family &Market Volatility &Recession &Taxes
