Funding a college education or starting a business are two things most people don’t think about when they think of life insurance. But if you have permanent life insurance (which is designed to last a lifetime) you can take advantage of its funds to help you get started on some of life’s most important adventures!
What is the difference between permanent life insurance and term life insurance?
Term life insurance provides coverage protection for a specified period of time such as 10 or 20 years and typically only pays out if you die during the term.
Permanent life insurance, on the other hand, provides protection for a lifetime as long as you continue to pay the premiums. It is designed to last a lifetime and accumulates a cash value. Because it accumulates a cash value, this means there are some benefits to permanent life insurance that you can take advantage of during your lifetime.
How can I pay for college with my permanent life insurance?
As time progresses, your permanent life insurance policy accumulates cash value and you can borrow against that value to help you pay for college. When it comes to college this can be especially helpful because it may eliminate the need to apply for a student loan or apply for financial aid.
What about starting a business? Can I use the money for that too?
One of the hardest aspects of starting a business is getting buy-in from banks to lend you the money. If you are unable to show that you have steady revenue, you will need to look at alternate options to get your business off the ground. If dipping into your savings isn’t an option, consider tapping into the cash value of your permanent life insurance policy.
Life Insurance is More than Death Coverage
Most people don’t realize that life insurance can be used as a financial vehicle, and that your policy’s cash value may be a good option to help you fund an important situation or milestone in your life.
Once you cross that bridge, check with your insurance agent (844-272-0283) and financial advisor to make sure it’s the best option for you. One important take away, however, is to know that life insurance can be used for more than just paying out a death benefit.