Cash Value Life Insurance

Cash Value (whole life) Insurance provides coverage during your entire lifetime. This differs from term insurance which is only for a specified period of time. Think of term insurance like renting your policy and cash value insurance as owning your policy. Further cash value insurance can be an important asset in your portfolio. 

With a cash value life insurance policy, a portion of each premium you pay goes toward insuring your life, while the other portion goes toward building up the cash value. The cash value portion of your policy accrues as tax-deferred interest. You can invest the cash portion into income producing or growth oriented.

This type of policy is a combination of coverage and tax-advantaged savings which helps protect your family and assets for the long-term., while allowing you tax-advantaged growth on your investments or access to the cash  which can be put back into your business or use in retirement.

CASH VALUE GUARANTEES & DIVIDENDS

The cash value grows within the policy; and you, the insured participates in the growth of the insurance companies’ investment fund. A portion of your premiums are invested and the earnings in this account may be paid out to you as dividends. Once dividends are declared each year they are guaranteed and will continue to grow each year. 

ACCESSING THE CASH VALUE

There are many different ways to use the cash value within your policy, including borrowing from it, using it to supplement your income in retirement, or paying for your child’s education. There are many exciting ways to use and access this cash value that is extremely tax efficient even if it is personally or corporately owned. 

ESTATE PLANNING

The unique features of whole life insurance make it an ideal way to protect your assets and pass them on to future generations. The death benefit allows for a multiple of what you pay for the annual premium to be paid out to your beneficiaries TAX-FREE. Payouts happen often within weeks of death avoiding the courts and lengthy probate.

Other Reasons to Consider Whole Life Insurance

  • You have assets that might be subject to taxes and fees after death

  • You’re financially secure and focused on growing your wealth

  • You contributed the maximum to your registered savings plans

  • You have retained earnings in a corporation or investment account. (This is the absolute best way to get money out of your corporation personally and for your beneficiaries.)

Some of the highlights of Cash Value Whole Life Insurance are: 

  • Security for Life – it cannot be changed or cancelled

  • Tax-Free Benefit - Your beneficiary receives the death benefit tax-free

  • Dividend Options

  • Access to Your Money - Use the cash value you’ve accumulated in your policy as needed throughout your life

  • Single or Joint Coverage

  • Can also be owned by your corporation

  • Asset Management

To find out more, please contact us to book a consultation. 

You can also visit the Liahona website by clicking the link below.