In today’s rapidly changing financial landscape, individuals are constantly seeking ways to secure their financial future and accumulate wealth. One strategy that has gained significant attention is overfunded life insurance. Overfunded life insurance is a powerful investment tool that offers a unique combination of life insurance protection and wealth accumulation potential. In this blog post, we will delve into the concept of overfunded life insurance, its benefits, and how it can be a smart investment tool for wealth accumulation.
What is Overfunded Life Insurance?
Overfunded life insurance, also known as a paid-up policy or a high-cash-value life insurance policy, is a type of permanent life insurance that allows policyholders to contribute more than the required premium amount. These additional funds go towards building cash value within the policy, which can grow tax-deferred over time. Unlike traditional life insurance policies, overfunded life insurance emphasizes the accumulation of cash value rather than solely focusing on death benefit protection.