Breaking down Insurance Secrets

Hey there, Goal Crusher and Dream Chaser!

Today I want to cover the purpose, benefits, and use of insurance in investment.

• Annuities

• Life Insurance

• Cash Value Accounts

This is a quick breakdown of how each of these types of policies work.

Annuities

The purpose of an annuity is for retirement or payouts over time.

Retirement because they are not allowed one until you hit age 65.

They have been around since the ancient times of Rome, maybe further.

The idea is to pay a lump sum to an insurer who will distribute for you.

This lump sum is typically all at once or can be done over time.

Life Insurance

Do you have your retirement or backup planned out?

The purpose of life insurance is the transfer of risk and death benefit.

It’s a safety net to help your family or beneficiary out from problems.

The key benefits of life insurance are:

• Financial Security: Family is safe if you unfortunately pass.

• Peace of Mind: They will be covered in far future.

• Flexibility: Some offer additional benefits.

Let’s cover the additional benefits life insurance has through cash value accounts.

Cash Value Accounts

A cash value account is something offer by whole life insurance or indexed universal life insurance.

To break it down, it’s the money your premium payments are being paid into.

Premium is the payment you make each month or year to keep insurance active.

But now you can use this money for loans or investments.

Some might think at this point what is the catch of doing this?

It comes out of your death benefit of course but it’s YOUR MONEY.

You are borrowing from yourself, and the money is paid back into YOUR ACCOUNT.

Conclusion

Let’s summarize everything we learned.

Imagine owning your own bank, a life insurance policy with a cash value account.

One benefit of a cash value account is investing a piece for it to grow.

It’s a safe financial vehicle to grow your money against inflation.

Meanwhile you can use policy loans on other investments and pay them back.

But if you survive until the ripe age of 65, this money can be pulled out and invested into an annuity for those payouts over time.

Always look over the full contract before accepting any policy.

Your pal Tim here will be a licensed insurance agent soon.

Feel free to ask me any questions.

Yours in digital success,

Timothy Cortez