When you think of life insurance, what may come to mind is something that provides benefits when a loved one has passed away. However, some types of life insurance policies can allow you to build wealth for yourself and your family while you’re still here to enjoy it!
Universal life insurance policies differ from term life policies (the ones most people are familiar with) because they offer a variety of benefits that you’ll have access to throughout your life. Similar to what is known as a whole life policy, universal life insurance is a type of permanent life insurance policy that provides permanent coverage, cash-deferred savings, interest earned on the value of your policy, and a death benefit. And if your life circumstances have you looking for money quickly – such as unexpected major expenses or a large purchase like a home – you can also borrow against a universal life insurance policy or a whole life policy.
Unlike whole life policies, however, universal life insurance policies normally cost less and also give you the flexibility to adjust premiums and death benefit amounts as needed while you continue to earn interest on the cash value of your policy.
An index universal life insurance policy is a safe way to grow your money without worrying about the ups and downs of stock markets. Read on to learn how you can build wealth and “become your own bank” by making smart choices with your life insurance.
Open up an index universal life insurance policy. An index universal life insurance policy is a specific type of policy that offers advantages like a minimum interest rate and the potential for higher interest growth than a standard universal life insurance policy.
When you open your policy, make sure you pick an agent who knows how to structure it properly. Rochkind Insurance has the expertise and compassion you need to make sure you and your loved ones are protected. We understand the unique and varied needs of our neighbors in the Galveston and Texas Gulf Coast area, and will take personal care to ensure your coverage is the right fit for you and your family.
Fund your policy with either an annual or monthly contribution. You can add your funds for the year and let your money grow without giving it another thought, but if that’s too much of an expense all at once, you can spread those contributions out monthly and track them as part of your household budget. Rochkind’s experts can help you crunch the numbers and decide what’s best for you.
Be patient! Growing your wealth will take time, so allow your interest to compound while you’re protected from market volatility. A minimum interest rate offers more peace of mind than many other forms of direct investment in the market, because while the cash value of your policy will rise when the market rises, it won’t drop when the market drops.
Borrow from your policy for large purchases like a car or a home. An index universal life insurance policy allows you to take out loans against the cash value without interrupting your compound interest. What’s more, these loans are tax-free. Talk to us to learn about the advantages of borrowing against your policy vs. choosing traditional mortgages or loans. We can also help you protect your investment with Galveston homeowners insurance and Galveston auto insurance.
Keep your policy for life. If you maintain your index universal life insurance policy throughout the rest of your life, your wealth will have the opportunity to grow and you’ll always know you have security when you need it. And when you do pass away, the money from your policy goes to your beneficiaries tax-free.
Life insurance may not be many people’s favorite topic, but we hope it helps to know you have options that can start working for you today! To learn about how a universal life insurance policy can provide for you and your loved ones, and get answers to your questions about any of our Galveston and Texas Gulf Coast insurance services, reach out to us online or call 409-770-9503.
