Apart from the familiar death benefit, permanent life insurance has a variety of valuable advantages that can both protect and expand your families financial future. Life insurance offers benefits that other assets on your balance sheet don’t. So read about these life insurance tips and boost your knowledge so you too can save in the future.
Access to cash: Once your money accumulates, your insurance cash value is accessible through policy loan or withdrawal for family, educational funding, business opportunities, retirement income, emergencies or to pay policy premiums.
Asset protection: The main purpose of life insurance is to offer a financial fall back when needed by your family when you are no longer able to provide for them and the impact of estate taxes upon your death. The death benefit can provide funds for your surviving family members to live comfortably and achieve their goals.
Consistent and safe accumulation: Life insurance cash values are guaranteed, this means that you will always have access to the assets you accumulate.
Flexibility with less restriction: You are able to access your accumulated cash value without restrictions that exist on other assets. In other words there are no penalties or required minimum disruptions, unlike tax favored investments such as 401k plans and IRAs.
Long term financial security for you and your loved ones: Over the years of building funds, you have various options for accessing those funds. You can cash in the policy, convert it to an annuity for guaranteed lifetime income, keep a portion of the death benefit and access some of the cash value or continue the policy to protect your loved ones and leave a legacy.
Protect in-surability: As long as you pay the premiums, life insurance provides coverage throughout your entire life, even if health or personal situations change. Buying a policy at a young age locks in in-surability.
There are so many unique benefits, life insurance can be a strong addition to your balance sheet and the foundation for your financial security.