05/29/2026
Repost from
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Let's talk about the basics.
Here's a quick guide to the two most common types of life insurance and how they work.
Disclosures: The use of cash value life insurance to provide a resource for retirement assumes that there is first a need for the death benefit protection.
The ability of a life insurance contract to accumulate sufficient cash value to help meet accumulation goals will be dependent upon the amount of extra premium paid into the policy, and the performance of the policy, and is not guaranteed.
Policy loans and withdrawals reduce the policy’s cash value and death benefit and may result in a taxable event. Withdrawals up to the basis paid into the contract and loans thereafter will not create an immediate taxable event, but substantial tax ramifications could result upon contract lapse or surrender. Surrender charges may reduce the policy's cash value in early years. There is no guarantee that the policy will provide income sufficient to fund retirement.
