Cash Value Accumulation, Tax-deferred Growth, Dividend-paying Policies, Wealth Accumulation, Loan Collateral.
Permanent life insurance is more than just protection; it is a powerful tool for Wealth Accumulation. Policies like Universal or Whole Life allow for Cash Value Accumulation, where a portion of your premiums is invested and grows on a Tax-deferred basis.
Some Dividend-paying Policies from mutual insurance companies actually provide annual returns that can be reinvested to increase the death benefit or used to pay future premiums. Furthermore, the cash value can be used as Loan Collateral, allowing you to borrow against your policy at lower interest rates than traditional bank loans. This makes it an essential component of a diversified financial portfolio.