Forgot Login ID?
Forgot Password?
  • Forgot Login ID?
    Forgot Password?
  • Personal
    • Personal Checking
      • Personal Checking
      • Order Checks
      • $5 Allowance
    • Personal Lending
      • Personal Lending
      • Personal Loan Rates
    • Mutual Benefits Program
      • Mutual Benefits Program
      • Mutual Benefits Member Portal
      • Tiers and Benefits
      • Local Partners
      • Mutual Benefits Newsletters
      • Personality Quiz
    • Personal Savings, Money Markets, CDs & IRAs
    • Home Lending
      • Home Lending
      • Home Equity Lines & Loans
      • Mortgage Lending Specialists
      • First Time Homebuyers
      • Mortgage Assistance Programs
      • Home Buying Road Map
      • Home Lending Rates
      • Calculators
    • Online, Mobile & Telephone Banking
      • Online, Mobile & Telephone Banking
      • Telephone Banking Guide
      • Video Demos
    • Health Savings Accounts
    • Overdraft Programs
    • Deposit Rates
    • Safe Deposit Boxes
  • Business
    • Business Checking & Savings
      • Business Checking & Savings
      • Deposit Rates
    • Lending
      • Lending
      • Medical Professional Practice Lending
      • Commercial Loan Meeting Checklist
      • Business Plan
      • Business Loan Application
    • Online, Mobile & Telephone Banking
      • Online, Mobile & Telephone Banking
      • Telephone Banking Guide
      • Video Demos
    • Branch Management Team
    • Business Team
Merrimack County Savings Bank
  • Resources
    • Financial Education
    • News
    • Routing Number
    • Banks Never Ask That
    • Calculators
      • College Savings Calculator
      • Loan Calculator
      • Mortgage Calculators
      • Retirement Calculator
      • Savings Calculator
  • About
    • Contact Us
    • Careers
    • Community Involvement
      • Foundation Application
    • Directors
    • History
    • Leadership Team
    • Locations
  • 800.541.0006

    • Online Banking Video Demos
    • Calculators

"We make a living by what we get, but we make a life by what we give." - Winston Churchill

Financial Education

Financial Education Center > Investing For Retirement
Cash Value Life Insurance
  • When You Should Consider Cash Value Life Insurance
  • Which Type Is Best for You?
  • Finding a Good Policy
  • Cracking Open Your Insurance Nest Egg for Retirement

When You Should Consider Cash Value Life Insurance

Cash value life insurance provides life insurance protection and can build future savings for your retirement. This type of life insurance is a combination of a death benefit coupled with a savings or investment account. Cash value life insurance includes whole life, universal life, variable life, and variable universal life. Remember, you are buying a life-insurance policy first; the savings portion is secondary.

IMPORTANT NOTE: Invest in a cash value insurance policy only if you need permanent life insurance protection. The primary purpose of life insurance is to pay benefits to your survivors, not to accumulate wealth. Cash value policies do have savings features, but rates of return are often sharply reduced by expenses, especially in the early years of the policy.

Cash value life insurance is for individuals whose spending priorities allow for additional funds to be committed to long-term savings. Consider investing in cash value life insurance if:

  • You have maximized contributions to tax-advantaged retirement plans, including 401(k) plans, 403(b) plans, traditional and Roth IRAs, SEPs, Keoghs, and SIMPLEs.
  • You don't expect to need the savings in your life-insurance policy for a long time—at least ten years or more. Many insurance policies are heavily front-loaded with company expenses and sales commissions, so you generally don't see much accumulation in the early years. If you cash out early, it can be quite costly.
  • You can afford all the insurance protection your family needs. When you're younger, premiums on cash value policies are higher than term insurance for the same level of coverage due to the savings component. Buy the amount of insurance you need. But don't sacrifice lower coverage just for the savings; if you can afford only term insurance, buy term insurance.
  • You find a policy that is reasonably priced, gives you a good investment return, and offers high cash value right from the beginning. This means you find a policy with unusually low sales expenses. See the section Finding A Good Policy.

When selecting cash value life insurance, you need to decide which type is best for you. You then need to find a good policy. Down the road, you will need to decide if and when you will crack open your insurance nest egg.

  • Next
Share Article:
Add to Facebook Add to Twitter Add to LinkedIn Add to GooglePlus
NHTrust is a trade name of New Hampshire Trust Company. Brokerage services are offered through INFINEX INVESTMENTS, INC., Member FINRA/SIPC. Investment and insurance products are subject to investment risk, including the possible loss of value. Products and services made available through Infinex are not insured by the FDIC or any other agency of the United States and are not deposits or obligations of nor guaranteed or insured by any bank or bank affiliate. Infinex and NHTrust are not affiliated. NHTrust is a brand name of New Hampshire Trust Company. We are proud to follow the TRUST approach with all customers and prospects.

PO Box 2826
Concord, NH 03302-2826
603.225.2793
800.541.0006
Telephone Banking: 888.224.6272
NMLS#433938

© 2021 Truebridge, Inc.

  • Personal
    • Branch Management Team
    • Personal Checking
    • Personal Savings, Money Markets, CDs & IRAs
    • Health Savings Accounts
    • Overdraft Programs
    • Deposit Rates
    • Online, Mobile & Telephone Banking
    • Home Lending
    • Personal Lending
    • Mutual Benefits Program
    • Safe Deposit Boxes
  • Business
    • Business Team
    • Business Checking & Savings
    • Lending
    • Online, Mobile & Telephone Banking
    • Expanded Business Solutions
    • Mutual Benefits Business Partner Program
  • Resources
    • Financial Education
    • Calculators
    • Routing Number
    • Newsletter
  • About
    • Careers
    • Community Involvement
    • Directors
    • History
    • Leadership
    • Privacy & Security
    • Statement of Condition
    • Values
    • Locations
  • Facebook
  • Twitter
  • LinkedIn
  • Personal
    • Personal Checking
      • Personal Checking
      • Order Checks
      • $5 Allowance
    • Home Lending
      • Home Lending
      • Home Equity Lines & Loans
      • Mortgage Lending Specialists
      • First Time Homebuyers
      • Mortgage Assistance Programs
      • Home Buying Road Map
      • Home Lending Rates
      • Calculators
    • Online, Mobile & Telephone Banking
      • Online, Mobile & Telephone Banking
      • Telephone Banking Guide
      • Video Demos
    • Personal Lending
      • Personal Lending
      • Personal Loan Rates
    • Mutual Benefits Program
      • Mutual Benefits Program
      • Mutual Benefits Member Portal
      • Tiers and Benefits
      • Local Partners
      • Mutual Benefits Newsletters
      • Personality Quiz
    • Health Savings Accounts
    • Overdraft Programs
    • Deposit Rates
    • Personal Savings, Money Markets, CDs & IRAs
    • Safe Deposit Boxes
  • Business
    • Business Team
    • Branch Management Team
    • Online, Mobile & Telephone Banking
      • Online, Mobile & Telephone Banking
      • Telephone Banking Guide
      • Video Demos
    • Business Checking & Savings
      • Business Checking & Savings
      • Deposit Rates
    • Lending
      • Lending
      • Medical Professional Practice Lending
      • Commercial Loan Meeting Checklist
      • Business Plan
      • Business Loan Application
  • Resources
    • Financial Education
    • News
    • Calculators
      • College Savings Calculator
      • Loan Calculator
      • Mortgage Calculators
      • Retirement Calculator
      • Savings Calculator
    • Routing Number
    • Newsletter
    • Banks Never Ask That
  • About
    • Contact Us
    • Careers
    • Community Involvement
      • Foundation Application
    • Directors
    • History
    • Leadership Team
    • Locations
  • Contact