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At Michael Taylor Agency of Columbia, SC, we want our insurance products to help you live a better life from your youth through retirement. We want you to be able to provide for your family in your death.
You have many investment options available to you. This blog explains how a permanent life insurance policy with a cash value component helps you prepare for and pay for retirement.
You might not have thought of life insurance as a way to save for retirement, but you can use it that way when you choose a policy with a cash-value component. You probably think of term life or whole life, but with an indexed universal life policy, you can provide for your family with a death benefit and save money in a cash-value account, tax-free. That savings let you have a nest egg into which you can dip into for purchasing cars or paying for a medical emergency.
Indexed Universal Life Insurance Defined
Universal life refers to a permanent life insurance policy with a saving account component. Your monthly premiums go into a cash-value account as well as paying for the insurance death benefit.
The indexed part refers to the stock market index. The cash value savings or investment account works with the index which determines the amount of money the account earns. Your investments are typically protected with a floor. That means your account balance cannot drop below a certain minimum even if the stock market does badly. You can exceed the current interest rate by using this method, so you earn more on your investment without risk.
You typically get a flexible premium option that lets you pay on a fixed amount on a schedule. You can request to adjust the premiums or the death benefits.
Call Michael Taylor Agency of Columbia, SC today to learn more about how you can save for retirement and insure your family at the same time. We can help you build the nest egg you desire.
