Reader’s Question:

Is there a type of life insurance policy that can also act as an investment vehicle for my retirement money here in Arizona?

Alistaire

Phoenix, AZ

Yes, there are types of life insurance available that can grow your money as you pay for it over the years, as well as maintain adequate amounts of life insurance coverage. And it is excellent that you are aware and specific about the goals you would want your life insurance policy there in Arizona to achieve. The nearest type of policy matching your requirements would have to be a Whole Life or Permanent Life Insurance Policy, specifically a Universal Life and Variable Life Insurance Policy. With these policies you would have a higher regular premium, however, a part of what you pay for life insurance goes into a type of savings account which accumulates cash-value and earns interest.

With a traditional whole life policy, your cash-value earns interest conservatively and the aim is for long-term growth. Universal Life Insurance will usually have a fund that is a pool of their policy holder’s premiums that is invested into diverse assets. Your premiums can also be adjusted depending on the goals of your policy, or how the economy is performing to preserve your policy’s cash-value. With Variable Life Insurance you are given more flexibility on where you choose to invest your cash-value and also allow multiple adjustments to be made into your policy’s death benefits every year. All of these policies are meant to be maintained for at least ten to fifteen years before you begin to really notice the growth of your money.

Tags: universal life insurance, whole life insurance, variable life insurance, life insurance coverage, advise