Do you own a permanent life insurance policy? If so, you may be eligible to borrow or withdraw benefits while you’re alive to help fund illnesses and other major life events. This feature is called living benefits or accelerated death benefits.
When you pay your premium, a portion of your money is invested. This allows your permanent life insurance policy to build cash value, making it more valuable over time (that value is heightened even more if you lock in a low rate at a younger age). Your insurance provider may advance you a portion of this cash value (or a portion of the whole policy) under certain circumstances, such as:
- Critical, chronic or terminal illness
- Buying a new home or car
- Sending a child to college
- Other big life events
Receiving living benefits can not only help fund life events, but can also cover any lost wages if you cannot work, such as during an illness. In those cases, a doctor must diagnose you in order to qualify you for living benefits.
Depending on your insurance provider, you may be asked to replace the money you borrowed when you are able. If not, your dependents will receive the remaining balance of your policy after your death. Either way, a permanent life insurance policy can be a great investment for your family since it can provide financial support during different times in your life.
Talk to your independent insurance agent about any limitations that exist from insurer to insurer and from state to state. He or she can help assess the needs of your family and search for the ideal policy on your behalf.
Get started today. Call Owen & Associates at (770) 422-0456 for more information on Marietta life insurance.