What Is Savings-Based Insurance?

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Savings-based insurance is a straightforward investment that can yield significant benefits for you and your beneficiaries. Although it requires a larger upfront payment, this type of insurance policy can be used to meet a variety of your retirement-planning needs. Read on to learn what savings-based insurance is, how it can be used, and how savings-based insurance might be a good fit for your retirement portfolio.

What is Savings-Based Insurance?

Savings-based insurance is a form of permanent life insurance that is fully funded with one upfront payment. Since the policy is funded from the beginning, the death benefit is guaranteed.

Here’s how it works: when you make one single payment, the policy is instantly funded. From there, the policy grows tax-deferred, allowing it to grow at a faster rate than annuities, CDs, and money market accounts. Plus, the death benefit passes to your beneficiaries tax-free, regardless of the amount of the policy.

How Can It Be Used?

A savings-based insurance policy is versatile and can be used in many ways besides simply providing death benefits to your named beneficiaries. This policy can be written to include living benefits, which can help pay for medical expenses or long-term care if needed. Some policies also allow you to withdraw against the benefit tax-free if you’re diagnosed with a terminal illness and given less than 12 months to live.

What are the Benefits?

Since savings-based insurance is an upfront and versatile policy, it has many benefits for retirement and end-of-life planning. The policy grows quickly, making it a great option for those who have delayed retirement planning until their 40’s and 50’s. It’s also a lower-cost alternative to long-term care insurance, and it can provide better emergency fund options over CDs or money market accounts.

You deserve life insurance that works for you. Savings-based insurance policies are a great option to quickly grow your retirement portfolio, prepare for unexpected medical situations, and boost your death benefits. Contact us today to learn how a savings-based insurance policy can help you build a growing legacy for your loved ones.