Life Insurance Cash Value: How Much Can It Grow?
January 27, 2016 | Your Finances
If you're considering the purchase of life insurance, it’s important to know that a permanent life insurance policy provides more than just a death benefit.
A permanent life insurance policy builds equity over time (known as cash value) that you can tap into—while you're living—to help pay for other financial priorities like a down payment on a house, a child's education or to supplement retirement income.
"Because you can access a policy's cash value at any time and for any reason, life insurance cash value is a great way to create financial flexibility," said Greg Balian, regional director of financial planning for Northwestern Mutual. "And people are often surprised when they learn how much cash value can actually accumulate over time."
In Northwestern Mutual's webcast A Powerful Asset: 5 Uses for Life Insurance While You're Living, Balian illustrates how a permanent life insurance policy can grow in value over time, both in terms of its death benefit and its cash value.
To view the entire webcast, click here.