In the end, your short-term cash flow requirements and other investment opportunities will determine whether or not to use the add to cash value option in a life insurance policy.
Assuming you want cash immediately, you could lean toward changing out your strategy profits.
The money profits would likewise give you cash for different speculations.
Using the add to cash value option, on the other hand, lets you keep using your life insurance to save money.
Reinvesting dividends further leverages the tax advantage provided by the policy’s cash value growing tax-deferred.
The option to add to cash value is also simple. The dividends are automatically saved, so there is no temptation to spend them.
You can get help from a financial advisor to figure out how to make the most of your policy dividends.
