You may think life insurance is only meant to provide basic financial support to loved ones in the event the policyholder dies. While that’s an important reason, to be sure – you may be surprised to know it can be beneficial in other ways too.

Pay for college or university

The cost of college in the U.S. continues to soar. A life insurance policy with a cash balance accumulates value on a tax-deferred basis. While it’s not considered an asset when applying for college financial aid, the funds can be accessed as a tax-free loan or they can be withdrawn to pay for a child’s college tuition costs.

Handle child care expenses

If you’re a stay-at-home parent with a young child or children and your partner dies, you will probably need to get a job to support yourself and the kids. You may find the cost of child care is higher than you anticipated. If your partner has a life insurance policy, you can hire a nanny or cover day care costs when you return to the workforce.

An AmeriLife agent can help you find coverage to address your specific needs. To find out your life insurance options, contact an AmeriLife agent by visiting www.amerilife.com. Be sure to share this AmeriNews article with your friends and family on social media and “Like” AmeriLife on Facebook.