Hi. My name is Erik Patterson and I'm a Paradigm
Life agent. For today's quick financial tip,
I'd like to talk about cash value. I'll start
off with a question. When is the last time
you walked into your bank, used money in your
savings account, only to realize that the
money you were using was still earning you
interest? ... Yeah. Just as I thought. Life
insurance is the only vehicle that will allow
you to do that. It is done via cash value.
Having cash value in your policy offers us
just a myriad of benefits. You can either
choose to borrow the money from your policy
or you can withdraw it. They both have the
pros and cons.
We at Paradigm, we advocate borrowing your
money because it has the most benefits. Depending
on what stage you are in your life. For instance,
when you borrow your money, you have the tax
benefits. The money is tax free if you borrow
it. You can also use it as collateral. I can
remember recently investing it in an investment
property, and the bank wanting to see my collateral.
I used my cash value on my policy to do that.
It's private. In most states it's protected
from court orders. These are some of the benefits
that you have of using cash value in your
policy. If you haven't thought about it, do
so.
