It's important to understand how cash value accumulation and risk correlate so you can choose a policy that fits your | Each type of policy carries a different level of risk |
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Accumulation Slows Over Time When you have cash-value life insurance, you generally pay a |
The rest of the death benefit the policy will pay will come from the cash value.
27Generally, this cash value can grow quickly in the early years of the policy | In the early years of your policy, a larger portion of your premium is invested and allocated to the cash value account |
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With whole life policies, you're generally taking the least risk since your cash value accumulation is guaranteed | As you are 65 years old now, the cost of insuring your life is much higher |
Variable life policies, on the other hand, can correspond more closely to the level of risk you might assume when investing in the stock market.
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