20 Different Ways to Use a Life Insurance Policy, Part 2
To better choose which life insurance policy is best for you, it is important to know why you need life insurance and how you want to use it! There are so many different ways to use a life insurance policy. Retirement and income replacement are just two among several beneficial uses of life insurance. Continue reading to learn more!
Also, don’t forgot to read the first article in this series. Click here!
6. Increase Your Death Benefits
If you choose not to access the accumulated cash value, you can always add the funds to pump up your death benefit! Most companies will usually allow this. So all you have to do is give your insurer a call and let them know you want to trade your cash value for increased death benefits, which would be equivalent to the cash value already accumulated.
7. Use Your Permanent Policy to Pay Your Premiums
Since permanent policies are more expensive, some insurers will allow you to use your cash value accumulation to pay your premiums. This gives you more immediate cash flow.
8. Surrender Your Permanent Policy for the Cash Value
If you decide you no longer need or want your policy because you financial situation has changed, whether for the better or worse, you can always surrender your policy. Rather than let it lapse, you can surrender the policy, and if you’ve had the policy long enough, you can benefit from the cash value portion.
9. Supplement Your Retirement with Permanent Life Insurance
For most high income earners, they will likely max out their contributions to their IRA’s and/or 401(k) plans. If you’re looking for additional tax-free retirement income, then you should definitely consider a permanent life insurance policy. The additional income you get from the cash value accumulation portion of your policy is non-taxable.
10. Use an Annuity Policy to Enhance Your Income
Don’t forget about annuities! You can purchase an annuity when you are younger and the premium you pay is invested. Then, when you retire, you can either choose a fixed income or a variable annuity – both vary the payment based on how well the annuity performs.
Stay tuned to find out more ways to use your life insurance policy! Also, get with one of our life and financial experts today! They can help you choose a policy, or they can conduct a policy review to ensure that your current policy is still right for you!
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