When you think of retirement, you probably think of your individual retirement account (IRA). Perhaps you’ve also put money into stocks and bonds. JC Demo Insurance Group of Matthews, NC, can offer you another way to save for retirement – life insurance.

Life insurance offers far more than just a death benefit to your beneficiary. You can purchase a life insurance policy that includes a cash value account. This type of savings account deposits a portion of each premium after paying the primary policy. Once you accrue funds in the account, the company invests it with other accounts like it.

The difference between opening a savings account yourself and doing it through the life insurance policy comes down to risk. If you open a savings account at a bank and invest the money yourself, you risk losing it to the stock market. However, when you use the life insurance policy method, the insurance company typically includes a provision that you’ll retain at least the amount invested from savings. Some accounts guarantee a minimum annual payment of a specific percentage, for example, two percent. You can earn more on the savings/investment account, but you can’t lose money.

Most cash-value accounts use a stock index, such as Standard & Poor’s, to calculate the payments. If the market does well, you earn more on the invested amount, which keeps growing throughout the life of your whole life policy. Every month when you pay your premium, part of it goes into the account.

Using a life insurance policy with a cash value account lets you provide for your beneficiary in case of your death while saving for your retirement with investments. Contact JC Demo Insurance Group, serving Matthews, NC, for more information on how to use life insurance for your retirement.