Protecting your loved ones with life insurance is a critical consideration in any financial plan.
- Would your spouse have to work more?
- Would your family have to move?
- Are there any outstanding debts that your family would have to pay?
- How would they pay for it all?
But today’s life insurance contracts are much more versatile than than providing cash to your beneficiaries in case of a premature death.
Cash Value Life Insurance
Life insurance policies such as whole life, or indexed universal life can be used as a tax-advantaged cash accumulation tool in what is called “cash value”.
Cash value is cash accumulating in a permanent life insurance policy that grows tax deferred, and since it is funded with after-tax dollars (meaning you already paid taxes on that money), you can pull out that money tax-free.
There are no restrictions on the uses of this cash value money. Unlike retirement accounts, which have penalties associated with any withdrawals before the age 59.5, you can use the cash value for anything you want. Some uses include:
- Down payment on a home
- Business Investment
Guaranteed Lifetime Income*
In addition to the benefits associated with cash value life insurance, it can be designed to create your own type of pension. In other words, cash value life insurance can provide guaranteed lifetime income*.
A life insurance policy that is designed for guaranteed lifetime income * has this specific option, or rider attached to it.
Accelerated Benefits Riders
Another popular rider we can attach to a life insurance contract at no additional cost is the Accelerated Benefits Rider…or ABR’s.
The Accelerated Benefits Rider allows the policyholder access to a percentage of the face amount in the life insurance policy in the event of a qualifying illness or injury.
Three Major Risks Covered In One Life Insurance Policy
Today’s life insurance contracts can cover more than the risk of dying too soon.
The guaranteed lifetime income rider can protect you from the risk of living too long…
And the ABR’s give protection from the risk of becoming ill.
Ready to find out more?
Click the button on the right to schedule time to discuss how life insurance will work in your financial plan.
*Insurance policy riders such as guaranteed lifetime income or accelerated benefits riders are options available on some insurance products. These options normally come with additional fees and/or policy costs.