Life Insurance Done 8 Ways
Happy September! It is also Life Insurance Awareness Month. And in the spirit of this month, it is worth noting that life insurance policies are being underutilized by half. Before deciding whether or not life insurance is right for you, educate yourself on all the dimensions and functions of the policy.
Did you know that only 51% of American’s own a life insurance policy? That means the other half is missing out on the many versatile capabilities a policy holds. Among the various excuses as to why they don’t own a policy, pure lack of knowledge seems to be the most common.
The general consensus breaks down to believing life insurance is only used to cover funeral expenses (68%) and/or providing income for survivors (59%). By that understanding, it's used simply to lessen the financial burden of the policy holder’s survivors. While those are some core reasons to have life insurance, they are far from the only ways to utilize a policy. Below are eight other ways a permanent life insurance policy can be used to provide financial security for you and your dependents.
1. Pay mortgages / debts
2. Pay estate taxes
3. Create an estate
4. Provide cash flow in retirement
5. Equalize an inheritance
6. Pay for college
7. Loan / borrow against
8. Fund charities
It is important to do your due diligence when making any sort of decisions about your future as well, as your families. A life insurance policy may provide the proper security and peace of mind but you will never know unless you do some research.