Looking at the variety of living benefits of life insurance out there might be a little confusing. It doesn’t have to be. We know the benefits of life insurance when a loved one has passed away, but, did you realize there are living benefits as well? Also known as Permanent Life Insurance, according to Penn Mutual there are several benefits of Permanent life Insurance. Six of these are:
- Tax Deferred Growth: This means that your life insurance is able to grow as time goes on and never decline, making it easier on you financially.
- Loan for Collateral: You are able to borrow against your life insurance for buying a home, investing in property or obtaining a loan from a bank.
- Flexible Retirement Funds: You may use your cash value to supplement your retirement income.
- Locked in Insurance: In order to make sure you are insured, it is best for you to obtain a life insurance policy early on in life whether it be for yourself, spouse or children.
- Tax Deductible: You are able to obtain tax-deferred growth with your permanent life insurance, as well as the ability for tax favored access to the cash value.
- College Savings: Those with college-age children may use the cash value to pay college expenses such as tuition, books and housing.
As you can see, having life insurance is as crucial not only at death but more importantly, while you are alive.
To talk more about life insurance, please contact us today.