Permanent life insurance offers benefits that many people are unaware of. While they know of the death benefit that will help their family cope with their loss, they are often unaware of the fact that the right permanent life policy can actually help them build wealth. Many of these policies offer investment opportunities and living benefits that will allow you to lay a solid foundation for your future financial security.
If having a traditional savings account is a little too mundane for you, look into a permanent life insurance policy. There are several policies that have investment options that allow you to build up cash value. This is beneficial for anyone who sometimes finds themselves in a pinch financially. You can borrow against the equity or re-invest your dividends. With policies that hold cash value, you can allow the money to sit in the account and draw interest (sometimes higher than a cash deposit), or you can choose to use it for other purposes like renovating your home.
When you have a permanent life policy that offers a cash-value account, keep a close eye on your rate of return. In most cases, the dividends or interest you earn on the money invested through these accounts is much higher than a savings account and may even beat the interest you can earn on cash deposits. Keeping an eye on your rate of return will help you stay up to date with your policies as well. By working with your insurer, you will be able to adjust your policy if you see that it is not performing as well as you had hoped.
Living benefits are also a possibility. This comes into play if you are ever in need of critical care or long-term care coverage. An accelerated death benefit gives you the option to receive your payout early if you are diagnosed with a terminal illness. You can take care of all your affairs yourself without relying on someone else who may not follow your wishes. Most people believe that life insurance only pays out after your death. When it comes to a permanent life insurance policy, living benefits are more common and are actually designed to take care of your needs, both before and after death.
With permanent life coverage, you can customize your coverage. You can determine how your money is used as it builds in a cash account within the policy. You can choose to include living benefits that will allow you to pay off debts or take care of any financial obligations you may have towards your family, friends, or business associates. With customized coverage, it's your insurance, your way. Customizing your insurance policy means that it will do what you need it to do so that you get the maximum return for your money.
When you have questions about permanent life insurance, don't rely on just anyone. Talk to a reputable insurance agent who will work with you to find the right policies that will meet your financial needs. At East End Insurance Agency, our highly knowledgeable experts can help you evaluate your needs and customize a policy that you can rely on to help you achieve all of your financial goals as well as support your family after you're gone. Contact us today to learn more!