Benefits of cash value life insurance

Benefits of cash value life insurance 

Cash value life insurance is a type of life insurance policy that provides both a death benefit and a savings component. As you pay your premiums, a portion of the premium goes towards building cash value within the policy. Here are some of the benefits of cash value life insurance:

1.    Death benefit: Cash value life insurance policies provide a death benefit that pays out to your beneficiaries upon your death. This benefit can help your loved ones cover expenses like funeral costs, outstanding debts, and living expenses.

2.    Savings component: A portion of your premium goes towards building cash value within the policy. This cash value grows over time and can be used as a source of savings or to fund a variety of needs such as college tuition or a down payment on a home.

3.    Tax-deferred growth: The cash value within a cash value life insurance policy grows tax-deferred. This means that you don't pay taxes on the growth until you withdraw the money.

4.    Access to cash value: You can access the cash value within