Commonly, most people look at life insurance as a staple that helps protect their family should they pass away suddenly. It's a great way to view this because that is essentially what the benefits of life insurance offer. But there's more to it than meets the eye, too.
Access to Cash
Once you have paid into your life insurance for a substantial period of time, it becomes a cash nest egg. You are able to access this cash via a policy loan or even a withdrawal. You can use these funds as you see fit. Whether you need to make a large purchase, fund college, have an emergency bill that comes up or whatever.
Life insurance is a great way to protect your assets. It can even offset some of the estate taxes after your death. What's more, the death benefits can provide your family with an assurance that their quality of life is not going to change just because the income that was once coming in no longer is. What's more, permanent life insurance cash values are guaranteed, so you can enjoy the comfort in knowing that your family is covered.
Flexibility with Less Restriction
Unlike IRAs and 401k plans, you don't have to worry about added taxes when accessing your cash surplus with life insurance. Namely, because this is money that you've already paid taxes on before you invested it in life insurance. There are no penalties or minimum distributions, either.
Long-term Financial Security
As you continue to pay in, the value of your policy grows. You can even convert said cash into an annuity, or even retain a portion of the death benefit so you can access the cash value. Or just continue to pay into the policy as you see fit to further safeguard your legacy.
As long as you pay your monthly premium, you can't be dropped. This means that no matter how your health may change in the years to come, you are covered. Unlike health insurance, your rates won't increase each year until the point where the premium is simply out of reach.
Indeed, as you can see, there are many benefits of life insurance that are commonly overlooked. Conduct some research of your own accord, and you will quickly realize that it could be the smart solution for long term savings and legacy protection that you've been seeking.