You know that life insurance is a valuable asset to have in the event of your death.
But did you know all the ways that life insurance can be valuable while you are living?
Aside from the obvious death benefit, there are countless ways that a quality life insurance plan can provide perks. Here are some extra benefits to keep in mind.
1. Get Help Buying a Home
If you’re looking to purchase a new home, you’ll also need a solid down payment.
You can use a loan or cash from your life insurance policy to help cover the down payment on a new home.
Figure out your loan options and how much you need for your down payment before you make a withdrawal.
The cash value of your life insurance can also be used for emergency home repairs or to take care of other issues that may arise within your home, so having a good policy makes sense.
2. Help You Make the Most of Your Retirement
Even if you’ve already started saving for retirement, life insurance can provide an added financial cushion.
As you get closer to your retirement, it could make sense to use the cash value of your life insurance policy to cover extra expenses.
Doing so maybe a better option than taking away from your actual retirement or investment accounts.
You could use the extra money to pay for retirement living expenses or any unforeseen medical expenses.
Make sure you understand all the stipulations around withdrawals listed in your policy before you use it to cover your retirement expenses.
3. Ensure You Alway Have the Care You Need
Having health insurance is a good way to make sure you get the medical care you need as you age.
But many health plans don’t cover the costs of long term care or will only cover a fraction of these expenses.
If you need a nursing home or some other form of long-term care at some point in your life, you can use your life insurance policy to help pay for nursing home expenses.
Like any withdrawal, using your policy to cover nursing home care will reduce the amount of your death benefit, so keep this in mind when cashing out your insurance.
4. Provide Peace of Mind for Yourself
You have enough stress in your life without thinking about the end of your life.
Life insurance can give you peace of mind to know that your funeral expenses will be covered without burdening loved ones.
While thinking about death isn’t pleasant, looking into a life insurance policy is a smart way to get this thought process started.
As you look over various options available, think about updating your will and burial wishes as well. Having even the smallest details in writing will make grieving a bit easier for those who are left behind.
5. Take Stress Off of Loved Ones
The main point of life insurance is to cover final expenses in the event of your death.
But life insurance can also help relieve stress on your loved ones in other ways as well.
If you have enough of a death benefit, you can make sure needed expenses, such as housing, food, and utilities are covered even if you are no longer around.
Depending on your coverage, you may even be able to ensure that your children can attend college or are at least financially comfortable if you were to pass away.
It’s something we don’t like to think about, but financial pressure can make the death of a loved one even harder.
In life and death, having life insurance coverage is a smart financial move.
A good policy will provide a financial cushion for you while you are still alive, and a little stability for your loved ones if you should pass away.
Either way, you look at it, life insurance should be part of any solid financial plan.