Life Insurance as an Investment Product

Purchasing life insurance can do more than provide a financial benefit to your family when you die. It can help you save for retirement or invest your income. Choose a life insurance policy with a cash value account to do both and let Allen & Associates Insurance Inc. help you build a nest egg you can rely on throughout life and that your family can rely on after you die.

How Life Insurance Can Serve Your Investment Needs

Originally developed as a product to help the wealthy save money for retirement, cash-value life insurance evolved to serve all levels of income in Albany, OR and beyond. A cash value account provides both life insurance and an investment or savings account tied to the premiums you pay for life insurance.

Here’s how it works. Every month, you pay a premium for your life insurance policy, just as you normally would. The premiums on a cash-value life insurance policy cost a bit more than for typical whole life insurance. That’s because they pay for your life insurance policy premiums and a small deposit to a savings account that works either like a mutual fund or an investment account that earns at the same rate as a major index, such as the S&P.

You Choose the Type of Cash Value Account

Some cash value options offer a high-yield savings account. Another of these policies uses an investment account. Whichever you choose, most policies include a provision that precludes you from losing the money paid into the account. Most guarantee a specific annual earning, although it might only be about one or two percent. Once vested, you can use the account as collateral to borrow against.

Which Cash Value Option Suits You?

Contact Allen & Associates Insurance Inc. in Albany, OR for a consultation to find your ideal life insurance policy. Let us help you save for the future and protect your family’s financial security now.