How a Life Insurance Policy Helps You Save For the Future

Your financial advisor may not have mentioned a valuable method for saving for your future that also protects the fiscal health of your family in the event of your death. They typically suggest an individual retirement account (IRA), investment accounts, and money market accounts. Irvington Insurance wants to suggest a life insurance policy with a cash value account.

Purchasing a life insurance policy with a cash value account component lets you save for the future while providing a death benefit to your family. This type of whole life policy costs a little more than term life insurance. Still, your premium covers both the life insurance policy with a death benefit for your beneficiaries and a cash value savings account. The savings account may be parlayed into an investment account that links to a stock index, typically the S&P 500.

Many advantages exist to a policy with a cash-value account. First, you can borrow against the account if needed to obtain a mortgage for your Indianapolis, IN home. 

Another huge benefit is that you typically avoid paying taxes on the money as the account builds. Like an IRA, you can deposit your premium pre-tax as a paycheck deduction. This lets you save without paying taxes on the deposits. You only pay taxes on the money when you withdraw it or when you take out a loan using it for collateral. You can withdraw from the account once it reaches a specific level, but you cannot do so without incurring a penalty.

Contact Irvington Insurance serving the Indianapolis IN area for more information on this life insurance that also lets you save money for your future. Call us today.