Cash-value life insurance
is the more expensive
type of life insurance and offers coverage for life, with an investment
component that enables policyholders to build up a tax deferred cash value that
may be borrowed against or taken as a lump sum if the policy is canceled.
Is it for you? Cash-value life insurance makes
the most sense for wealthier people who have already contributed the maximum to
their retirement accounts and who anticipate needing lifetime insurance
coverage, or for people who want coverage to help with estate planning.
Varieties of cash-value insurance include the following:
Whole life Insurance
offers a face amount
of coverage that can be kept for life - often with a premium that starts out
higher than term insurance and doesn't change through the life of the
policyholder. Whole life insurance also has an investment component that
builds up cash value.
Is it for you?
People who meet the
criteria for needing cash-value life coverage and who prefer the security of
steady returns may want whole life insurance.