Post by mortgages143 on Nov 3, 2011 11:08:06 GMT -5
wiseGEEK
clear answers for common questions
Feedback About wiseGEEK Login
Finance
Business
Law
United States
World
What Is Cash Value Life Insurance?
Ads by Google
Burial Insurance Policy
Life Insurance
Term Life Insurance
Life Insurance Rates
Term Insurance
Life Insurance Cash Value
Cash Value Life Insurance Policy
Insurance Term Life
Cash Value Life Insurance Taxable
Life Insurance Cash Value Calculator
Cash Surrender Value Life Insurance
Cash Value Of Term Life Insurance
Ads by Google
Permanent Insurance
Gerberlife Insurance
Rider Only Insurance
Gerber Health Insurance
Cash Value
Accidental Insurance
Article Details
Written By: Tricia Ellis-Christensen
Edited By: O. Wallace
Copyright Protected:
2003-2011 Conjecture Corporation
Free Widgets for your Site/Blog
Did You Know?
The phrase "sweating like a pig" doesn't have anything to do with the animal; it comes from iron smelting. more...
get widget
This Day in History
November 3, 1986: A Lebanese magazine broke the US Iran-Contra Scandal. more...
get widget
Subscription
Learn something new every day by email
More Info...
Cash value life insurance is a more expensive type of insurance where some of the money paid in premiums is placed in savings accounts or invested so that it begins to grow. As the policy ages, this value becomes accessible to policyholders. While amounts accessible in the first few years of paying for the insurance aren’t high, over time, the policy can build a certain amount of equity that might be either used to take over insurance payments at a set point or borrowed from the policy for necessary expenses. This insurance can also be called permanent or lifetime insurance and may have set premiums. Cash value differs from term life insurance, which expires at a specific point leading the holder with nothing and the potential of paying much higher premiums to get insurance again.
Ads by Google
Compare Term Life Plan
Cover Of 1Cr for Just Rs.647* p.m. Only an Ullu Won't Apply Here.
PolicyBazaar.com/Term-Plan
LIC Life Insurance
Features, benefits & premiums of all LIC plans. Choose the best
ApnaPaisa.com/LIC
ICICI Prudential iCare
50 Lakhs @ Rs. 24/day*. Paperless. Insure Life In 3 Steps! T&C Apply.
www.iciciprulife.com/iCare
A Plan for Every Need
Max New York Life’s Insurance Plans To meet Every Need of your Family
MaxNewYorkLife.com/Life_Insurance
Cheapest Term Plan Quote
Cover for 50 Lakhs for Rs 399 pm Get Quote of All Insurance Comp
www.bimadeals.com/TermPlanInsurance
There are big fans of cash value life insurance and those who feel it is a poor investment strategy. Premiums are much higher in cost than those for term life, and only a portion of the money paid is set aside in a savings or investment accounts. On the other hand, this money is exempt from taxes if it is borrowed and a whole payout may also be exempt. Generally, this form of life insurance is criticized because many people might follow a more successful investment strategy by buying term and using the difference between cash value life insurance premiums and term payments to make personal investments, which may have a higher performance rate and are actually much larger than the percentage of money cash value life typically invests.
Nevertheless, there are people who like the security of cash value life insurance for several reasons. With permanent insurance and set premiums, people don’t need to worry about finding a term life insurance plan in later years when payments get progressively more expensive. Most types of this coverage don’t ever expire, provided people keep making payments. When cash value begins to accrue, policyholders can borrow the money from that value if they need to keep making payments but have economic difficulties, or they can cash the whole plan out.
Additionally, when the cash value life insurance reaches a certain point after years of payments, if policyholders choose not to touch the cash, they may not have to make payments anymore. They’d still get the life insurance payment upon death, minus the cash value. Cash value usually isn’t very high, perhaps $10,000-20,000 US Dollars (USD) when a plan is fully vested, and the policy could be worth $100,000 USD or more.
From a financial standpoint, especially early in life, buying term tends to make better sense, leaving people with more money to save or invest than the amounts that would be invested in a cash value policy. In contrast, cash value insurance has some attractive features that are worth investigation. People planning on investing in insurance should spend some time reviewing pros and cons of both prior to making a decision.
Ads by Google
Life Insurance Policy
Looking for Best & Cheapest Life Insurance Policy ? Compare Now !
MyInsuranceClub.com/Life-Insurance
SBI Life Policy Online
Buying Insurance now made simpler!
epolicy.sbilife.co.in
High return investment
Invest in forex and make money Open your free account Now!
ACFX.com
ICICI Mediclaim Insurance
Single Policy for Entire Family. No Checkup till 45 Yrs of Age.
healthinsurance-icicilombard.com
Related Videos
Play
Investment Tips to Earn More Money
Play
Mistakes to Avoid for Hands-On Investors
Play
Inwood NY Real Estate Guide
Related wiseGEEK Articles
Ads by Google
Fegli Insurance
Keyperson Insurance
Universal Insurance
Whole Insurance
What Is Cash Value?
How Do I Choose the Best Term Life Insurance?
What Are the Advantages of Term Life Insurance?
What Are the Pros and Cons of Cashing Out Life Insurance?
What Is Second-to-Die Insurance?
How Is Life Insurance an Investment?
What Is Permanent Life Insurance?
Ads by Google
Term Insurance
Get yourself covered for 1Crore By paying less than Rs.1000 a Month
paisabazaar.com/Term-Insurance
Compare Life Insurance
3 minutes could save you thousands Compare and get best term plans.
i-save.com/Term-Insurance
Tata AIG Car Insurance
Free Car Pick up, Direct Settlement 6 Month Warranty Repairs. Buy Now!
maruti-carinsurancetataaig.com
Tata AIG Travel Insurance
Covers Medical, Accident & Baggage Loss Benefits. Buy Online in 2 mins
TravelInsurance-TataAIG.com
Discuss this Article
▼ Post your comments
Write for wiseGEEK:
Freelance Writing Jobs
wiseGEEK
clear answers for common questions
FAQ
Contact Us
Privacy Policy
Terms and Conditions
Copyright © 2003 - 2011 Conjecture Corporation
clear answers for common questions
Feedback About wiseGEEK Login
Finance
Business
Law
United States
World
What Is Cash Value Life Insurance?
Ads by Google
Burial Insurance Policy
Life Insurance
Term Life Insurance
Life Insurance Rates
Term Insurance
Life Insurance Cash Value
Cash Value Life Insurance Policy
Insurance Term Life
Cash Value Life Insurance Taxable
Life Insurance Cash Value Calculator
Cash Surrender Value Life Insurance
Cash Value Of Term Life Insurance
Ads by Google
Permanent Insurance
Gerberlife Insurance
Rider Only Insurance
Gerber Health Insurance
Cash Value
Accidental Insurance
Article Details
Written By: Tricia Ellis-Christensen
Edited By: O. Wallace
Copyright Protected:
2003-2011 Conjecture Corporation
Free Widgets for your Site/Blog
Did You Know?
The phrase "sweating like a pig" doesn't have anything to do with the animal; it comes from iron smelting. more...
get widget
This Day in History
November 3, 1986: A Lebanese magazine broke the US Iran-Contra Scandal. more...
get widget
Subscription
Learn something new every day by email
More Info...
Cash value life insurance is a more expensive type of insurance where some of the money paid in premiums is placed in savings accounts or invested so that it begins to grow. As the policy ages, this value becomes accessible to policyholders. While amounts accessible in the first few years of paying for the insurance aren’t high, over time, the policy can build a certain amount of equity that might be either used to take over insurance payments at a set point or borrowed from the policy for necessary expenses. This insurance can also be called permanent or lifetime insurance and may have set premiums. Cash value differs from term life insurance, which expires at a specific point leading the holder with nothing and the potential of paying much higher premiums to get insurance again.
Ads by Google
Compare Term Life Plan
Cover Of 1Cr for Just Rs.647* p.m. Only an Ullu Won't Apply Here.
PolicyBazaar.com/Term-Plan
LIC Life Insurance
Features, benefits & premiums of all LIC plans. Choose the best
ApnaPaisa.com/LIC
ICICI Prudential iCare
50 Lakhs @ Rs. 24/day*. Paperless. Insure Life In 3 Steps! T&C Apply.
www.iciciprulife.com/iCare
A Plan for Every Need
Max New York Life’s Insurance Plans To meet Every Need of your Family
MaxNewYorkLife.com/Life_Insurance
Cheapest Term Plan Quote
Cover for 50 Lakhs for Rs 399 pm Get Quote of All Insurance Comp
www.bimadeals.com/TermPlanInsurance
There are big fans of cash value life insurance and those who feel it is a poor investment strategy. Premiums are much higher in cost than those for term life, and only a portion of the money paid is set aside in a savings or investment accounts. On the other hand, this money is exempt from taxes if it is borrowed and a whole payout may also be exempt. Generally, this form of life insurance is criticized because many people might follow a more successful investment strategy by buying term and using the difference between cash value life insurance premiums and term payments to make personal investments, which may have a higher performance rate and are actually much larger than the percentage of money cash value life typically invests.
Nevertheless, there are people who like the security of cash value life insurance for several reasons. With permanent insurance and set premiums, people don’t need to worry about finding a term life insurance plan in later years when payments get progressively more expensive. Most types of this coverage don’t ever expire, provided people keep making payments. When cash value begins to accrue, policyholders can borrow the money from that value if they need to keep making payments but have economic difficulties, or they can cash the whole plan out.
Additionally, when the cash value life insurance reaches a certain point after years of payments, if policyholders choose not to touch the cash, they may not have to make payments anymore. They’d still get the life insurance payment upon death, minus the cash value. Cash value usually isn’t very high, perhaps $10,000-20,000 US Dollars (USD) when a plan is fully vested, and the policy could be worth $100,000 USD or more.
From a financial standpoint, especially early in life, buying term tends to make better sense, leaving people with more money to save or invest than the amounts that would be invested in a cash value policy. In contrast, cash value insurance has some attractive features that are worth investigation. People planning on investing in insurance should spend some time reviewing pros and cons of both prior to making a decision.
Ads by Google
Life Insurance Policy
Looking for Best & Cheapest Life Insurance Policy ? Compare Now !
MyInsuranceClub.com/Life-Insurance
SBI Life Policy Online
Buying Insurance now made simpler!
epolicy.sbilife.co.in
High return investment
Invest in forex and make money Open your free account Now!
ACFX.com
ICICI Mediclaim Insurance
Single Policy for Entire Family. No Checkup till 45 Yrs of Age.
healthinsurance-icicilombard.com
Related Videos
Play
Investment Tips to Earn More Money
Play
Mistakes to Avoid for Hands-On Investors
Play
Inwood NY Real Estate Guide
Related wiseGEEK Articles
Ads by Google
Fegli Insurance
Keyperson Insurance
Universal Insurance
Whole Insurance
What Is Cash Value?
How Do I Choose the Best Term Life Insurance?
What Are the Advantages of Term Life Insurance?
What Are the Pros and Cons of Cashing Out Life Insurance?
What Is Second-to-Die Insurance?
How Is Life Insurance an Investment?
What Is Permanent Life Insurance?
Ads by Google
Term Insurance
Get yourself covered for 1Crore By paying less than Rs.1000 a Month
paisabazaar.com/Term-Insurance
Compare Life Insurance
3 minutes could save you thousands Compare and get best term plans.
i-save.com/Term-Insurance
Tata AIG Car Insurance
Free Car Pick up, Direct Settlement 6 Month Warranty Repairs. Buy Now!
maruti-carinsurancetataaig.com
Tata AIG Travel Insurance
Covers Medical, Accident & Baggage Loss Benefits. Buy Online in 2 mins
TravelInsurance-TataAIG.com
Discuss this Article
▼ Post your comments
Write for wiseGEEK:
Freelance Writing Jobs
wiseGEEK
clear answers for common questions
FAQ
Contact Us
Privacy Policy
Terms and Conditions
Copyright © 2003 - 2011 Conjecture Corporation
