Term Life Insurance And Cash Value

Term life insurance does not accumulate cash value, however, if you play your cards right you can still come out with more cash in the bank than if you had purchased more traditional forms of permanent insurance.

Term life coverage is available for pennies on the dollar in comparison to traditional whole or universal life insurance. No, it does not accumulate cash value however, if you invest the money that you save by purchasing term insurance into an annuity, you can end up with a lot more money for yourself during retirement or your family when you pass away.

Consider a term life policy that saves you $60.00 per month over whole life insurance. With the term, you get the same amount of coverage for less money… so your family is still protected in the event of your death. By investing that sixty dollars a month into an annuity at the 30 year mark, you’ll have accumulated more cash to add to your net worth than you would have if you had opted for the permanent insurance.

Most people don’t ever consider doing this and it does take a good bit of self discipline. The fact is that guaranteed cash value in an annuity that is withdrawalable at any time vs a traditional life policy that restricts your ability to draw cash out is always better. Annuity interest rates are typically guaranteed and are always higher than the interest rates guaranteed by universal life.

Before you jump in any financial decision, make sure that you’ve compared the policies and rates from several companies side by side so that you can make an educated decision.

Resource: http://lifeinsurance4all.com is a free life insurance quote calculator that allows you to compare top companies, policy details and quotes side by side.

Christy Love is a retired life insurance agent with over 30 years of experience in helping people protect what matters most… their families. As an EzineArticles.com expert author, Christy enjoys sharing her knowledge of life insurance with the online community.

Article Source: http://EzineArticles.com/?expert=Christy_Love

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