The main reason to own life insurance is the death benefit - the money your beneficiaries receive when you move forward. But do not overlook the benefits that life insurance can offer now while you are alive. Let's look at some of these "living benefits."
One of the most frequent living benefits of whole life insurance is the value that accumulates. Throughout the years of paying premiums, some of your cash value accumulates. This accumulation of cash can be withdrawn in response to emergencies, serve as collateral for loans, or later as retirement income. Many policies also pay dividends when the insurance company makes a profit.
There are other benefits that come with owning a piece of property. Yes, property. Just because your life does not look to property (after all, it is simply written on a small number of pieces of paper), do not sell short. In fact, many of the features and benefits of property apply to life insurance.
For example, the life of the cash value can be used as collateral to borrow money from sources other than politics as well. Say you decide that you need to borrow money from a bank. Depending on the amount and type of loan you're looking for the bank in May to determine the type and quantity of goods that you can use to repay the loan must be your income interrupted. Your life insurance can serve as the security you need.
Another advantage of life insurance as property is that it creates an immediate succession. To understand this concept, here's an example: Suppose a man invests in a plot. May we must wait many years for land to appreciate. Moreover, its value in May never achieve quite what he planned for it, itself down in May. And if this man had died the day after the purchase of land if he paid for all species or not, his family could have difficulty in the liquidation of property and get money from it. But with life insurance at present, the policy goes into effect the insured policyowner has created a fund to be paid to its beneficiaries - even if only one premium payment was made. He did not wait for the property to assess the value or worry about whether the value will rise or fall.
But that's not all. Another advantage is the convenience and leverage to pay for life insurance in installments. For the full face value of a life insurance policy in force, all of the premium purchasing policy need not be prepaid. It may rather be paid in installments. The total proceeds of this policy are guaranteed to be paid to the beneficiary upon the death of the insured as long as premiums are met and there is no outstanding loans against the policy. And the return on investment, life insurance plans that offer can be very beneficial, especially as regards the imposition of accumulated cash values.
Life insurance is a property you can own, an asset. Do not neglect, do not forget to take it as such.
One of the most frequent living benefits of whole life insurance is the value that accumulates. Throughout the years of paying premiums, some of your cash value accumulates. This accumulation of cash can be withdrawn in response to emergencies, serve as collateral for loans, or later as retirement income. Many policies also pay dividends when the insurance company makes a profit.
There are other benefits that come with owning a piece of property. Yes, property. Just because your life does not look to property (after all, it is simply written on a small number of pieces of paper), do not sell short. In fact, many of the features and benefits of property apply to life insurance.
For example, the life of the cash value can be used as collateral to borrow money from sources other than politics as well. Say you decide that you need to borrow money from a bank. Depending on the amount and type of loan you're looking for the bank in May to determine the type and quantity of goods that you can use to repay the loan must be your income interrupted. Your life insurance can serve as the security you need.
Another advantage of life insurance as property is that it creates an immediate succession. To understand this concept, here's an example: Suppose a man invests in a plot. May we must wait many years for land to appreciate. Moreover, its value in May never achieve quite what he planned for it, itself down in May. And if this man had died the day after the purchase of land if he paid for all species or not, his family could have difficulty in the liquidation of property and get money from it. But with life insurance at present, the policy goes into effect the insured policyowner has created a fund to be paid to its beneficiaries - even if only one premium payment was made. He did not wait for the property to assess the value or worry about whether the value will rise or fall.
But that's not all. Another advantage is the convenience and leverage to pay for life insurance in installments. For the full face value of a life insurance policy in force, all of the premium purchasing policy need not be prepaid. It may rather be paid in installments. The total proceeds of this policy are guaranteed to be paid to the beneficiary upon the death of the insured as long as premiums are met and there is no outstanding loans against the policy. And the return on investment, life insurance plans that offer can be very beneficial, especially as regards the imposition of accumulated cash values.
Life insurance is a property you can own, an asset. Do not neglect, do not forget to take it as such.
5 comments:
Great point that you have made about the living benefits of permanent life insurance. My clients have learned how to accumulate massive amounts of cash in their policies to control their financing cost to other assets. Accumulation is just one step in the wealth creation process. Flowing that accumulation through as many assets as possible will create more wealth and more opportunity for their family, their business and their legacy.
Thanks for explaining very well about insurance. Some are afraid to have this because it seems like they are preparing for their death. But good thing you explained it very well.
This is a good coverage of the cash value and other important benefit that are always overlooked. I personally don't think of other benefits when I think about insurance. I’m always concern with the death benefit.
For me life insurance is an asset that I have made for my family. I just wanted to make sure that they will not face any financial difficulty when I am not there. I am happy to know lot more benefits of this policy that you have pointed. Thanks.
At last there is an opportunity to put your medical needs first, having the cover you need at the cost you can afford. EasyHealth is a new medical savings facility, which was designed to give All South Africans access to private pre-hospital care.
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