You may think of life insurance as simply a way to cover the basics when you pass away: pay your funeral costs, pay off the mortgage, fund your children’s college education, and maybe leave a little left over for your surviving spouse. And, yes, it can do all those things. Life insurance proceeds provide liquidity, are generally free of federal income taxes for the beneficiary.
But did you know that life insurance can help meet many other needs as well? With the wide variety of life insurance policies that are available today, you may want to give it another look to see if you’re missing out on some important benefits. When a policy’s “death benefits” are combined with the many “living benefits” available, it can be a very useful tool indeed.
Here are just a few of the many possible uses of life insurance:
Additional Funds for Retirement:
- Build cash value for use in retirement
- Realize tax advantaged income (through policy loans and withdrawals)
- Help increase income from pensions or social security
- Provide funding for special needs children or adults
- Buy life insurance for children or grandchildren to potentially lock in lower rates, guarantee their insurability, and provide other living benefits
- Provide for charitable contributions
When choosing the right insurance for you, it’s important that you fully understand how the policy works – in other words, the policy’s costs and limitations as well as its benefits. For this reason, it’s critical that you find a licensed professional who will take the time to understand your goals before recommending the right product and strategy for you. It may also be in your interest to work with a licensed professional who can offer policies from a variety of insurance companies rather than just one or two.
Are you taking advantage of all the benefits that life insurance can offer? An AmeriLife insurance agent can help you learn about your options so that you can be confident you have the right coverage for your unique needs. Visit www.amerilife.com/consumers to find an agent in your area.