How Can You Use Your Life Insurance?
November 11, 2021
There are certain necessary investments that make life simpler and more secure. You probably already know the importance of health insurance and a retirement fund, but have you considered all of the available options to give yourself greater peace of mind?
One of the crucial ways to protect yourself and your loved ones is to purchase a Life Insurance policy. These types of policies will pay out a death benefit to a designated beneficiary upon the death of the policyholder. While most people understand the need for such a policy to cover final expenses and outstanding obligations, have you asked yourself "What can I do with my life insurance now?" Find out how you can put your policy to good use while you are living.
Utilize the Cash Value
There are several different types of life insurance. Term life insurance is often less expensive, but only covers a predetermined amount of time. Permanent, or whole life insurance, costs more in the long run, but you keep the policy for life as long as premiums are paid.
One of the greatest benefits of permanent life insurance is that you build up a cash value that you can access while you are still living. The requirements for taking out a loan or withdrawal vary by company, but you can essentially gain access to the current value that has accumulated and use the funds as you need. Pay back the amount and you can borrow from your policy again.
Get Access to Living Benefits
Life insurance benefits are usually only paid after the owner's death. However, there are some circumstances that will allow you to use your monetary benefits during your lifetime.
In cases where the policyholder has a serious illness or requires long-term care, it may be possible to gain access to up to 50% of the policy's value to pay for their medical and care needs.
These are some little-known ways that you can access money that belongs to you when you need it most. Talk to your insurance provider to better understand your options and which path is best for you.
About 1891 Financial Life
At 1891 Financial Life we don’t just sell policies, we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs.
Our portfolio is extensive, ranging from various life insurance policies to our MYGA to support your financial needs no matter what stage of life you’re in. For more information, contact us at (855) 804-7424.
Find out how one policy can make a powerful impact.