5 Ways to Use the Living Benefits of Permanent Life Insurance

It is the nature of life that we never know what the future may bring. But, in a world filled with uncertainty, it is reassuring to know that our families will be financially secure if something happened to us. That is what we hear from policyowners who have chosen permanent life insurance, especially if they have first-hand experience in what protection and cash value can mean when they need it most.

Living Benefits and Multiple Options
One of the goals of any financial security plan is to protect against life’s uncertainties, and life insurance is often the first item on the list for taking care of family members. Starting a policy early protects your insurability for the future and helps make the insurance more affordable. Permanent life insurance combines protection for your family with cash value that builds over time. Once it accumulates, the cash value becomes a “living benefit” that can be tapped to improve your life and meet your goals.

Here are some important ways you can use these living benefits:

• Dealing with the Unexpected
  If you were to become disabled, would your company still put money in your 401k? With cash value to fall back on, you could supplement disability income and cover necessary expenses if you were ever faced with a life-changing accident or illness. One Kansas couple found comfort in the waiver of premium feature on their life insurance policies. Northwestern Mutual now pays their life insurance premiums, continuing important coverage even though one partner is disabled.
   
• Educating Children
  College tuition and living expenses may be paid with permanent life insurance cash value, and currently most applications for student financial aid don’t consider this asset when determining eligibility for scholarships, grants or loans. Parents also purchase life insurance as part of their plan to protect their ability to pay for college. The college funding calculator can help you estimate how much your family might need and your financial representative can help determine how best to meet the needs with your available assets.
   
• Generating Business Cash
  When an opportunity arises or your business requires immediate funds, you can access life insurance cash value quickly without credit applications or lengthy approval processes. One family in Iowa expanded their catering business using cash value as collateral to secure favorable bank loan terms and local government incentives. Another business owner in Michigan found peace of mind in using cash value to meet payroll expenses when his small engineering business was hit by the area’s economic woes.
   
• Provide Funds for Emergencies
  Whether it is an unexpected home repair or a family crisis, you may at times need additional dollars to address life’s challenges. Once your emergency fund is depleted, cash value can be tapped to pay for unexpected events, like a new roof or a family member’s medical expenses. Your financial representative can explain how the process works and help you develop a financial security plan that manages risk and sets you on course to attain your financial and personal goals.
   
• Supplement Retirement Income
  The cash value of permanent life insurance can be a stable asset in your retirement portfolio that is guaranteed to grow, consistently and tax-deferred, over many years. There are multiple options for using your accumulated cash value to suit your individual needs at retirement and beyond. One retired business owner from Florida took comfort in knowing his assets were safe as he worked long hours in his men’s clothing business, and now enjoys a comfortable retirement as a result.

With protection and accumulation, permanent life insurance helps you build a foundation for life, a stable portion of your financial security plan that helps manage risk and grow assets. Contact your financial representative to discuss your needs and the financial plan that can help you achieve them.