The Major Advantages of Life Insurance

Posted by Leland On August - 17 - 2015 0 Comment

If you want to take care of your family (and I hope that is everyone), then you might want to consider why life insurance might be a good choice for you. Life is unpredictable and should something ever happen to you, you want to make sure that your family and relatives are taken care of. Life insurance┬áis a contractual agreement between the insured and the insurer, where the insurer promises to pay a designated beneficiary a sum of money or “benefits” upon the death of the insured person. In simpler terms, a spouse, child or grandchild might receive a sum of money, items, and/or valuables from the insured person upon his or her death. In some cases, terminal illness may constitute payment.

What other benefits might result from life insurance?

1. Cash Accumulation
After accumulation, your life insurance cash value can be accessed through policy loan or withdrawal for family and business opportunities, education funding, retirement, emergencies, and more. The downside–it could take several years to accumulate a large sum of cash.

2. Safe Cash Accumulation
Anything you accumulate under permanent life insurance cash values, you will have guaranteed acesses to.

3. Asset Protection
Life insurance is also a financial fall-back. The beneficiary can provide other suriving family members with the funds, if needed.

4. Less Restrictions on Cash Value
Unlike some plans like IRAs and 401k plans, there are less restrictions. on accumlated cash value. For some, there are no penalties or required minimum distributions.

5. Long-term Financial Security for You and Relatives
The biggest take away (and the most noted) of them all is the financial security life insurance will provide for you and your family. As you build your cash value over the years, you will have multiple options to accessing that money. You can either cash in the policy, covert it to a guaranteed lifetime income, keep a portion of the death benefit and access some of the accumulated cash value, or continue to protect your family.

About the Author: Jacob is a guest contributor from Arnouts Insurance Agency, a leading insurance agency in Okemos and Lansing, Michigan providing diverse insurance needs for individuals, families, and businesses.

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