Life Insurance for the Living

​When most people think of life insurance they think of the end of life needs. Most people think life insurance is just to cover the cost of estate taxes, paying off debt, replacing income, or mortgage protection which are all valid reasons for life insurance. Life insurance does more than just cover the loss of income or pay off debts when someone dies. If set up correctly; life insurance can care for you in a variety of ways. Agents use what is called a “rider” or insurance clause to add in the right protections for your future. With the right rider life insurance can give you financial protection against cancer or other critical illnesses that may strike later in life. Life insurance can be written to provide income if you become disabled. There is assistance with long term care if written into the life insurance policy as well.

Having a whole life policy or universal life policy can give financial benefits to the owner of the policy as well. These kinds of policies build what is called cash value. Over time an owner of a whole life or universal life policy can turn the policy into cash by surrendering it back to the insurance company. The longer the owner has this type of policy the more cash value builds. Cash value can be taken out as a loan for different needs. It is also a form of financial equity. Having a larger cash value can help get a mortgage or loan approved as well.

When life insurance is written correctly it can serve many different functions throughout your life. You need a knowledgeable agent to guide you through the process. Take your time and work with an agent to make sure your life insurance will protect your whole life not just leave money for your loved ones. We are always willing to help you answer questions like these. Feel free to get in touch with us.

Blog post by: Andrew Kitchen