We all know life insurance provides a financial safety net for your family in the event of your passing. But there are many more perks that come with a life insurance policy, depending on the type of policy you acquire and which insurance provider you choose. Perks that can benefit you today! Read on to find out more about how life insurance can benefit you while you’re still alive.
1. Your account can be accessed for cash
With permanent life insurance, a cash value can be built with the payment of your premiums. This cash value grows over time, depending on what your policy dictates. You then have access to this cash, up to the whole amount, for withdrawals, taking loans, or even to pay your premiums in the future. Knowing your life insurance policy is key, as you might unintentionally cancel the policy if you withdraw the wrong amount. And keep in mind that policies without a cash value come with cheaper premiums. The choice is yours.
2. Your premiums can get returned
If you outlive the term period in term life insurance policies, you can potentially have your premiums paid back to you. This process is called return of premium, it’s a built-in savings plan that comes with your life insurance policy, which unfortunately involves paying more expensive premiums throughout the life of the policy. But generally, the chances of getting your premiums returned at the end of the term period are solid. Once again, there are pros and cons to this option, but the final decision is up to you.
3. Other family members can be covered
The main policyholder is not the only one who can benefit from a life insurance policy. A child rider is an add-on to a life insurance policy that pays out a death benefit in the event of one of your children passing away, and a spouse rider is a similar protection in the case of your spouse’s death. While these may be uncomfortable tragedies to think about, it makes sense financially to add these forms of coverage to your already existing policy rather than acquiring separate ones for your children and spouse.
4. Your money can be accessed if you get sick
There are other types of life insurance riders with the purpose of letting you access a part of your policy’s benefit in times you get severely sick. These are known as accelerated benefit riders, sometimes known as critical illness or chronic illness riders, and can be applied to both permanent or term life insurance policies. With accelerated benefit riders, you and your family have more prominent safety nets prior to any possible event of your death.
Are you ready to insure you and your family’s life? Contact one of our licensed life insurance agents today!