Not exact matches
Permanent
cash value life insurance policies cost
much more than term, but also provide the added security of
cash value
accumulation.
Cash value
accumulation is normally
much stronger in a modified endowment contract than in a life insurance policy.
Generally, seniors may find that an immediate annuity is
much more suitable than a deferred annuity due to the lack of time for
accumulation of
cash within the account.
And for those who are in an asset
accumulation stage and are likely remain so for a long period of time, it doesn't make
much sense to invest for the
cash flow because they already have the
cash flow.
Of course it follows that Universal policies cost
much more than term because they provide lifetime coverage, death benefits and guaranteed
cash value
accumulation.
High
cash value policies with paid up additions earn
cash accumulation much faster than ordinary whole life insurance.
Much like the more basic universal choice above, it focuses on
cash accumulation by more aggressively targeting market indices for
cash growth.
While there are slightly more details you should understand before buying a universal contract, understand its components are
much like term, with the addition of a small
cash accumulation.
You are given a guaranteed fixed rate of interest for the
cash value
accumulation feature and that is how
much you earn.
Here's the question — If the savings difference between the 2 policies works out to $ 211 per month, and you don't really reap
much in the way of earnings from the
cash value
accumulation for the first 10 years, would you not be better off investing that $ 211 per month and earning 6 - 8 % annually?
The
cash value
accumulation rate of investment is generally
much lower than rates provided through other investment vehicles.
Con's are the most obvious being the cost of it which you will see the quotes for permanent life are
much higher than term life, if not structured properly can lapse due to insufficient funding, and
cash value
accumulation can be minuscule not making it worthy investment tool.
Accumulator Universal Life Insurance offers permanent life insurance protection to help you with your present needs, plus a
cash value
accumulation feature that can provide
much - needed funds later in life.
You may not know how your premium is being used and what portion of the premium is being applied for the death benefits and how
much is going to the
cash value
accumulation.
Generally, seniors may find that an immediate annuity is
much more suitable than a deferred annuity due to the lack of time for
accumulation of
cash within the account.
But unlike term insurance, it also has a
cash value
accumulation aspect and does not expire,
much like with a whole life insurance policy.