Most people think of life insurance as death benefits. Their mind automatically wanders to the amount of money their beneficiaries will receive when they pass. However, that is the main reason to get insurance, but there are two types of insurance and getting a life insurance quote will show you what you qualify for based on age and affordability.
A life insurance company sells two types of insurance though they may be partial to sell permanent over term. Term life insurance gives protection for a period. The usual policy is around 10-20 years. It will only payout if you pass during that period. Permanent life insurance is vastly different. It provides lifelong protection. As long as you continue to pay the premiums, you will have coverage. It is designed to be permanent, or to last a lifetime. This policy gains cash value during the term policy does not. There are important benefits to permanent life insurance. Here are five things you probably didn’t know about this type of insurance.
1. It Can Fund College Educations
Since this type of policy accumulates cash, it can be used to help pay for college. The money can be used for just about anything. There is no need to apply for a loan at the local bank, and there are no financial aid forms to fill out. All you need to do is ask for the money, and it is yours. Though it will have an impact on the death benefits the policy will payout, it can be valuable. A life insurance company can explain how it all works.
2. Starting A Business
Did you ever think that getting a life insurance quote may be beneficial for starting a business? It’s true, you may be thinking for the future, but that policy may save you when times are tough. You can borrow money from yourself and don’t need the credit check and all the other hassles. An obvious source of funds for business is a policy that can help you out. Did you know that Walt Disney borrowed from his insurance to start Disneyland? I guess it is true that dreams really can come true.
3. Take Time Off
When you got your life insurance quote, you probably don’t think about it helping you out when you need to take time off from work. Many people can retire early by using their policies. While you can control sending a kid to college or starting a new business, you cannot control a family emergency. All you can do is to be financially prepared for when an event like this happens. A great life insurance company standing behind you with superior policies is always a great way to secure the future.
4. Have Funds For Chronic Illness
Should you become ill; a policy can allow you to gain access to your money when you need it most. Using the money while you’re alive can help you out. While it is not a substitute for care, your life insurance company can explain how it can be used to help with expenses and then the remainder will be paid to the beneficiary upon your passing.
5. Grow your 401(k)
An insurance policy provides a safety net. This can allow you to aggressively allocate your 401(k) investments. You can tap into your cash value to help with the initial stages of retirement. Your 401(k) can grow for a longer period. While that may not work for everyone, getting a life insurance quote, and finding out how affordable they are, may show you how advantageous they can be for growing your 401(k).Get insurance Quote