Steiner Insurance Group

2413 Wilcox Dr
Norman, OK 73069

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Life Insurance with Savings or Investment Account

Life Insurance with Savings or Investment Account

When you consider purchasing life insurance from Steiner Insurance Group serving Nashville, NC, you have many choices beyond the typical whole life or term life insurance policy. You might consider a policy with a cash value account in addition to the death benefit.

What is a cash value account life insurance policy?

The term life insurance with a cash value account refers to a life insurance policy that provides both a death benefit to the purchaser’s beneficiary and a savings account that ties to either an investment account or a money market account. It can be either a whole life policy or a term life policy, although the whole life option proves more common.

Each month, when you pay your premiums, a portion of the premium goes into your savings after your policy premium gets paid. This amount is pre-tax, so you don’t pay taxes on it. It remains untaxed until you withdraw from the account, or you pass away.

Benefits of Cash Value Account

This helps you save money while you save money. When you die, if you have money remaining in the cash value account and the policy type pays it to the beneficiary, they will pay taxes on it only if your total estate exceeds the amount deemed taxable by the Internal Revenue Service. They’ll pay estate tax on their inheritance if your total estate value exceeds $11.58 million.

Some cash value savings accounts give you the option of investing the funds, sometimes with a guaranteed minimum payout, other times, tied to an index fund. Either way, you save pre-tax and earn money from your savings.

Contact Steiner Insurance Group serving Nashville, NC to learn more about this valuable life insurance policy. Let us help you protect your family’s financial future with life insurance.

Partner Carriers

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