Life Insurance Can Do More Than You Think!

Most people know that, in the event that something happens to them, a life insurance policy could prove invaluable to their family members. During a time of emotional hardship, you certainly don’t want your loved ones to suffer financial complications as well. But you might be surprised to know that life insurance can provide many more benefits than simply replacing your income, or covering funeral expenses if you pass away.

Hedging against estate taxes. In the event that your estate is taxed after your death, your heirs could struggle to come up with the cash. In some cases they could be forced to sell assets, such as real estate, that they would rather keep. If you plan ahead now, you could work with a life insurance professional to obtain a policy in the amount of your expected estate taxes, to cover the bill.

Equalizing an inheritance. Let’s assume that you have two children, a son and a daughter. Your daughter frequently uses the family beach home, and you would love to leave it to her in your will. However, your son isn’t a beach person, and you would like to leave him something of equal value. A life insurance policy in the amount of the beach house’s value could equalize their inheritances.

Provide “living benefits”. It is a myth that you can only access life insurance benefits after the contract owner’s death. If you choose a policy that provides living benefits, you can actually draw income from the policy under certain conditions. For example, if you’re terminally ill or severely injured, your living benefits can provide much-needed income to your family.

Build cash value. Some life insurance policies allow you to build cash value within the contract, and take withdrawals or loans in the event that you need funds in the future. You can use the money for anything you wish, but people often do this when facing unexpected expenses in retirement. You could even use the funds to cover your child’s or grandchild’s college tuition.

Leave a legacy. Since you can name anyone as your life insurance beneficiary, you can even set it up so that your favorite charity receives the funds after your death.

These are just some of the alternate uses for life insurance. Some policies can be surprisingly flexible, and allow for almost any need you can imagine. Give us a call to learn more, and we’ll see if we can locate a life insurance contract that suits your unique preferences.