One of the options available with cash value policies —whole life, universal life, and most variable life — is the opportunity to purchase a term life insurance policy for others in your family under your cash-value policy. This benefit usually saves you a great deal of money.
Say, for example, that you’re 40 years old and you buy a universal life or whole life policy. You’re building some cash value and, at the same time, using your premium to buy your term life coverage and add to your cash value. As the cash value grows and earns interest, either more of your premium goes toward your cash value, or the additional amount it earns goes toward paying the higher premiums for your coverage.
You may also want to cover your spouse in the event of his or her untimely death because both of you bring in income to support the family. If you go out and buy a separate term life policy for your spouse, you’re probably going to pay much more than if you broaden your coverage to include the other person.
Generally, breadwinners use insurance to protect their family, so purchasing life insurance for your children is usually unnecessary.
Say, for example, that you’re 40 years old and you buy a universal life or whole life policy. You’re building some cash value and, at the same time, using your premium to buy your term life coverage and add to your cash value. As the cash value grows and earns interest, either more of your premium goes toward your cash value, or the additional amount it earns goes toward paying the higher premiums for your coverage.
You may also want to cover your spouse in the event of his or her untimely death because both of you bring in income to support the family. If you go out and buy a separate term life policy for your spouse, you’re probably going to pay much more than if you broaden your coverage to include the other person.
Generally, breadwinners use insurance to protect their family, so purchasing life insurance for your children is usually unnecessary.
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