Leader Life Financial Solutions

Cash value life insurance is different from term life insurance because it offers death benefit protection as well as the ability to accumulate cash value that can be accessed while the insured is alive. A portion of each premium payment is applied to the policy’s cash value. The cash value grows with additional premium payments and any interest the insurance company credits the policy. The cash value decreases as monthly policy charges are deducted and by any policy withdrawals, loans, or other distributions the policyowner takes from the policy.

The primary purpose of life insurance is to provide death benefit protection. But what is that? In short, when a life insurance policy’s insured person passes away, the policy’s death benefit amount is paid to the policy’s beneficiaries. This death benefit is generally paid income tax-free2 and may represent a substantial financial sum to help protect your family, business, or estate from the financial impact of the insured’s death.

Also, cash value life insurance gives the owner options to withdraw accumulated cash tax-free but term life doesn’t have such option. Cash life insurance premium doesn’t change and lapse once you own it but Term life insurance will lapse after 10-30yrs which will require the owner to sign a new contract with a massive increase in premium. To learn more click on our website and book an appointment to speak to one of the licensed professionals.

Yes, so long as the policy has built cash value