When you purchase a whole life policy, a portion of your premium goes toward the life insurance itself, another portion goes toward your cash value, and the rest goes toward administrative costs and your agent’s commission. The insurance company invests the cash-value portion, and in return, you get some of the profits. Your share goes into your cash value. In a sense, then, this portion is an investment. Like all investments, it has its rewards.
No comments:
Post a Comment