Retirement planning is the art of structuring your current and anticipated assets in such a way that they will provide for the life you want to lead in retirement, and eventually the legacy you want to leave behind.
One of permanent life insurance’s most attractive features is the ability to grow cash value inside the policy, but most permanent insurance policies require your cash value grow within accounts controlled by the insurance company. What if you want more control?
When buying for the long term, people prefer to own rather than rent. And with ownership comes benefits. With a house that you own, you can make improvements, borrow against the equity you’ve built up, and you have flexibility with how you use the property. So too with whole life insurance. This form of permanent insurance allows you to maximize the use of your policy’s death benefit, cash value, and dividends in a way that adds flexibility.
The ability to generate and maintain equity – or cash value – within a life insurance policy is one of the most compelling features of permanent life insurance products, such as whole life insurance. But what is cash value, where does it come from, how does it work and, most importantly, how can it help you meet your goals for financial security?