How Does it Work?

Types of Life Insurance that Grow Your Money:

• Whole Life Insurance: Whole life insurance policies accumulate a cash value at a guaranteed interest rate, typically between 2-4% annually.

• Universal Life Insurance: Universal life insurance policies combine a death benefit with a savings component, allowing policyholders to invest their cash value in various investment options, such as stocks or mutual funds.

• Variable Life Insurance: Variable life insurance policies allow policyholders to invest their cash value in various investment options, such as mutual funds or stocks.

Benefits of Growing Your Money in Life Insurance:

• Tax-Deferred Growth: The cash value of life insurance policies grows tax-deferred, meaning policyholders won’t pay taxes on the gains until they withdraw the funds.

• Guaranteed Minimum Interest Rate: Many whole life and universal life insurance policies offer a guaranteed minimum interest rate, ensuring that the cash value will grow at a minimum rate.

• Liquidity: Policyholders can often borrow against the cash value of their life insurance policy or withdraw funds to cover unexpected expenses.

While life insurance is primarily designed to provide financial protection, certain types of policies can also help grow your money over time. By understanding the different types of life insurance that offer a savings component, policyholders can make informed decisions about their financial futures.