This is a personal cash fund that you can choose to contribute
to, over and above the cost of your life insurance coverage.
Cash contributions earn tax-deferred interest and can be withdrawn
at any time, for anything. You must have life insurance coverage
to have a cash fund.
The online quote form asks how much money you would like to
contribute on a monthly basis to your cash fund. The Internal
Revenue Code regulates the maximum amount you can contribute.
If you wish to contribute a lump-sum to your cash fund, please
download
and submit this form.
Why would I want to put money in the Cash Accumulation Fund?
Contributing to a cash fund is one of the more flexible and
convenient ways to set aside money and achieve your financial
goals. You can accumulate cash value for any future need and
you have the right to withdraw your cash value for any reason
or use your cash value as loan collateral.
For example, you might choose to accumulate funds to buy a home,
to pay for college education expenses, to build a reserve for
emergencies, or to enhance your retirement income. You must
have group universal life coverage to take advantage of a cash
accumulation fund.
How much should I contribute to my cash fund?
The amount of money you contribute to your cash fund is really
dependent on your goals for the future. You can use the money
in the fund for retirement, home repair, vacations, a new car,
or anything else you choose.
However, the Internal Revenue Code (IRC) regulates the maximum
you can contribute. The greater the amount of life insurance
coverage you have, the more flexibility there is to choose the
amount you would like to contribute.
There is no minimum contribution required and you can start
and stop contributions to your cash fund at any time. You also
have the flexibility to make direct lump-sum contributions to
the fund.
When you select an amount to contribute to your cash fund, we
will determine if your contribution meets IRC guidelines and
let you know if you need to change it.
How do I contribute?
You have two options: Scheduled
contributions through payroll deduction. Maybe the
slow-but-steady approach of moving funds directly from your
paycheck to your cash fund is the best option for you. After
all, you cannot spend what you do not see! But this method saves
you time as well. No trips to the bank. No monthly decision
on how much to save, because you've already made the decision. Lump-sum
contributions. Maybe you save best when you receive
a bonus or income tax refund. If that's the case, when you get
your refund or bonus, you can put it directly into your cash
fund and begin earning interest on that money.
What is a cash accumulation fund?