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Cash Value Life Insurance for Retirement or Investment in Kenya

By March 25, 2024Blog


With the unpredictable cost of living, job market uncertainty, and the need to take care of family, it’s becoming more and more important to plan for the security of your financial future. There are many ways to invest your money, with Life Insurance as one that is often ignored but very useful. Dive deeper into this blog to understand how you can leverage the compounding potential that life insurance with Dawit Insurance offers for retirement planning in 2024.

How can Life Insurance Grow Your Money?


Whole life insurance and endowment plans are two types of life insurance that are different from each other. Both offer safety and investment options. 

With these plans, some of your premiums go toward the death benefit, which protects your family financially during your untimely death. On the other hand, the insurance company invests the rest in a tax-advantaged account that helps the cash value for your insurance refund grow.

What is the benefit of a Life Insurance Tax-advantaged account?

Your policy’s cash value grows faster, thanks to the power of compounding interest and the best part is you don’t have to pay taxes on the gains until you take the money out. Because of this tax benefit, your savings can grow faster, which will eventually lead to a higher payout cash value.

Can Life Insurance Earn You Income While You’re Alive?

There are a number of good things about the cash value part of whole life and endowment plans. To begin, you can borrow against the cash value if you need cash quickly for an emergency, to make an investment, or for some other reason. 

Second, you can take out some or all of the cash value at any time during your lifetime. This can be useful as extra income, especially when you quit.

Can Life Insurance Fund Your Future Goals and Dreams?


Affording a quality education for one’s children is a major concern for many breadwinners in Kenya. If you want to make sure that your kids can still pursue their ambitions of higher education if something happens to you, a life insurance policy’s death benefit can be a huge help. You can give your children the best start in life by using the lump sum payout to pay for their education, including tuition, housing, and other related charges.

In addition, the death benefit can be used to fund your business initiatives, which is great news if you have always wanted to be your own boss. You can make your entrepreneurial aspirations a reality by withdrawing the cash value from your life insurance policy to start a small business, grow an existing one, or invest in a great opportunity.

The death benefit from a life insurance policy can be used for a variety of purposes beyond just funding higher education or starting a business. Maybe buying a house of your dreams, taking a family vacation, or funding an entrepreneurial endeavor have always been your top priorities. With the money from the death benefit, these dreams can come true.

Is my Life Insurance Payout Money Taxable?

The ability of some policies, such endowment plans and whole life insurance, to grow tax-deferred is a major perk of life insurance when it comes to paying taxes. Your insurance company will invest a portion of your premiums in these plans, and the money they make from those investments will grow tax-free. In contrast to taxable investments, your money can grow tax-free until you take it out, allowing you to enjoy a higher rate of return.


In addition, your loved ones won’t have to pay taxes on the money they get from your life insurance payout after you pass away. If you have amassed a large fortune or inherit a large sum of money, this tax break may be quite helpful. 

Furthermore, Life insurance policies tailored to company owners or important employees, for example, may come with extra tax benefits. As an example, businesses might incentivize the protection of their human capital by paying for key person life insurance policies with tax-deductible premiums.

How Can Dawit Insurance Assist in Maximising My Life Insurance Tax Benefits?

Life insurance plans have the ability to provide tax benefits, including tax-deferred growth and tax-free death payments, but it’s important to be aware that these benefits might come with complex tax implications that are subject to certain laws.

This is where we come in with the knowledge and experience of over 15+ years in the Kenyan insurance field. We can structure your life insurance policy to maximize tax benefits while following all applicable rules with our personalized guidance that is suited to your unique financial circumstances.

The following are benefits you’ll receive when you schedule a 100% FREE consultation with us:

  • Learn all you need to know to qualify for tax-deferred growth and death benefits that are free of taxes.
  • Explore the financial and tax consequences of your life insurance policy choices.
  • Keep yourself updated with any revisions or updates to tax regulations that could affect your life insurance coverage.


Start your path to financial security by taking advantage of life insurance’s many uses as an investing instrument. Your life insurance policy should serve to safeguard your loved ones and help you achieve your life goals, and with Dawit Insurance by your side, you can confidently turn this into your reality.

Get in touch with us today to discover how life insurance can be a wise financial investment for your future. Follow this link to access our Life Insurance webpage for additional information on the policy.