Life insurance with savings, more than an emergency fund
Life insurance with savings, more than an emergency fund. No one doubts that life insurance is a magnificent instrument to protect loved ones when the insured person is absent. However, there is a form of permanent life insurance, which is also a savings instrument.
In other words, when taking out life insurance with savings, part of the premium will accumulate in cash value. The capital saved produces an interest of around 7% per year tax-free.
The best thing is that the money saved can serve as collateral to take a loan or withdraw all the cash to use in whatever you want. If he had to face an emergency, the beneficiary knows that he has money saved in this type of life insurance.
If someone wants to cancel their life insurance, they can take the cash value saved before ending the policy. Imagine that you have been paying your life insurance all your life, and you reach old age and cannot continue paying your premium, instead of losing the contract you can also use the money saved to make the payments.
The money saved can also be used as an entry or down payment when buying a property or used as root capital to start a business or expand an existing business. Life insurance with savings, more than an emergency fund.
