Submitted By: William Brown
When you purchase a life insurance policy, your primary thought is usually security for your beneficiaries. Providing peace of mind to your spouse or loved ones is the most important reason for choosing a policy with a guaranteed death benefit. Knowing that there will be funds available for your final expenses, the mortgage and other financial needs after you are gone can be a great comfort.
But a permanent life insurance policy can also provide a ‘living benefit.’ When you own a permanent life insurance policy, and make regular premium payments, your policy accumulates cash value. It’s cash that can be made available during a financial emergency, for unexpected opportunities or when you need a source of funds to pursue an important goal. Any gains you may experience within the policy are also free from federal income tax, providing yet another benefit.
You should keep in mind that any policy loans will reduce the account value and death benefit of your policy and should only be done after careful consideration. However, there are no restrictions on how the proceeds are used.
Permanent life insurance is designed to stay in force through your entire lifetime. The premiums are fixed and guaranteed so they will not increase as you age. And, if you apply and are approved for a policy early, you won’t have to worry about being denied coverage later based on any health problems that may arise.
Providing a financial safety net for your loved ones is an attractive aspect of life insurance. But the ability to take advantage of ‘living benefits’ provided by permanent life insurance is a benefit that many families will find highly attractive. Speak with your insurance agent to find out more about the benefits of a permanent life insurance policy.
William Brown is a State Farm Insurance Agent serving the Thurston County insurance market. William graduated from St. Martins College in Lacey and has been serving the Thurston County Insurance market for 35 years.
