LIFE INSURANCE

When most people think of Life Insurance, they think of a lump sum benefit paid to beneficiaries. While this is the primary purpose for purchasing a life insurance policy, it is not the only purpose. In fact Life Insurance is much more versatile than it was in past generations. In other words Life Insurance has evolved to offer substantial Living Benefits to you. 

 

Critical Illness, Chronic Illness, and Terminal Illness options allow the policy owner to receive a significant portion of their death benefit in the event that he or she experiences a chronic illness, terminal illness, or critical illness. This advance of the death benefit can be used to pay bills, replace lost income, or create memories.

 

Another important function of many Life Insurance policies is the growth of Cash Value. Life Insurance can be structured to build cash value over the life of the policy. This means the policy owner can borrow against the cash value at a lower interest rate than a traditional bank loan and without credit checks. Thus the policy owner has access to cash should the need arise. When structured properly, some life policies can take advantage of cash value loans to provide a tax free stream of income for retirement!

 

One of the most important benefits of Life Insurance is the lack of taxation on money that is passed onto beneficiaries. Generally speaking the death benefit of life insurance is Tax Free! Thus life insurance is an outstanding wealth transfer vehicle. 

An additional living benefit of Life Insurance is the Payment of Dividends! Some carriers pay the policy owner dividends on the cash value of the policy. These dividends can be paid as cash, used to buy additional paid up life insurance, or borrowed against.