Combination Life Insurance
If you are having a hard time choosing which life insurance policies to go with, you may want to consider getting combination life insurance. Just as it sounds, it offers a combo of different insurance coverage in one – most importantly, that of term and permanent life insurance. You can find this type plan offered with group insurance policies rather than the individual life insurance options. Many employers are offering combination life insurance to its staff, so check with yours to see if it is available. A lot of people like combo insurance because they are able to formulate a plan that fits their needs.
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Distribution of benefits with combination life insurance
With combination life insurance, if you would like the beneficiaries of the plan to receive money over time after you are deceased, it is possible to set that up. The cash value of the insurance is tax-deferred, so this also brings in a lot of interested people. If later you decide to switch up the benefits of the plan, you are able to do so. There is usually one period each year where employees are allowed to make changes to their plan. So if a major event in your life occurs, such as a new child, marriage or divorce; you can make proper adjustments.
Combination life insurance and premium payments
With combination insurance, a missed premium payment doesn’t cause a lapse in the policy, like with traditional insurance plans. Cash value also accumulates over time. These can be paid out in a lump sum or on a periodic basis; this is too tax deferred. Investment options are available for employees to help increase their rates of return. You will also be able to earn a rate of return that is competitive when making contributions to the cash value. The earn rate is locked for four years, promising to never go below 3 percent.