When you look at your financial plan, how important is your life insurance?
Odds are, your life insurance policy does more good for your financial future than you think.
We all need money to survive. Who’s relying on your income?
Do you have a spouse, children, aging parents, or other loved ones who rely on your income for things like food, shelter, and security?
You already know that your policy protects them in the event that you can’t.
A good life insurance policy does more than that, though.
Imagine knowing that your heirs will never have the added stress of struggling with your mortgage debt.
Plus, in the event of serious illness, your insurance may help ease your financial burden so you can take the time to heal without struggling to provide for yourself and your family.
That security and peace of mind is priceless.
But it’s only the beginning of what a life insurance policy can do for your financial plan.
Cash Value Accumulation and Distribution
Did you know that over time, your policy accrues cash value?
The longer you keep it, the more that money accumulates.
That’s actual money that you can use in the future to help cover unforeseen expenses, and it can even be accessed to supplement your retirement income.
Often, that supplemental retirement income from your policy’s cash value can be accessed income-tax free.
For more information about using your life insurance policy as part of your retirement plan, and to learn about potential tax benefits, we recommend that you consult a qualified legal or tax adviser.
Your Legacy and Estate Planning
Life insurance can help you set up an estate that benefits your children, your grandchildren, a charity, or whomever you’d like – and it does it in a tax-efficient way.
Allocate money for things like attorney fees and estate taxes to simplify the process and leave more money to your heirs.
Speaking of heirs, if you plan to leave assets to multiple people or entities, a life insurance policy can equalize those inheritances.
Family businesses, too, benefit from your insurance policy.
Ensure the longevity and solvency of your family company with your insurance so that it continues to provide comfort and security for the people you love.
After all, that’s the whole point, isn’t it?
Your financial plan – and your life insurance – are there to keep you and your loved ones solvent and secure.
Originally posted 2017-02-27 09:00:59.