It may be called life insurance, but most people associate this type of coverage with death. While life insurance is an important step in ensuring your loved ones are protected in the event of your passing, there are plenty of other ways that life insurance can benefit you, your family and your interests, both in the event of your death and while you’re still around.
If You Get Sick
As we’ve mentioned, death isn’t the only scenario where life insurance is beneficial. If you become sick with a terminal illness, permanent life insurance can help you cover the costs of treatment. Additionally, many of these policies offer a rider provision, which allows you to accelerate your policy’s death benefit while still alive and use the money at your own discretion.
If You Own a Business
Life insurance is uniquely beneficial for business owners by acting as a safeguard for your business in the event of you, your business partner or a key employee passing.
Permanent life insurance not only helps your business continue operations under these circumstances, but it also helps transition business ownership in the event of your or your partner’s death without cost to the business.
If You Want to Leave Money to a Person or Charity
If you have loved ones you want to protect in the event of your death, life insurance policies offer options for leaving a significant lump sum of money to them. It can also be used to help them pay any taxes due on your estate. Typically, beneficiaries do not have to pay taxes on the money received through your life insurance policy.
In the same way, you can leave a tax-free lump sum to any philanthropic interests you wish to contribute to after your death for an impactful legacy.
If You Need Extra Income
Life insurance is a dependable option for when you need a bit of extra income. Permanent life insurance policies have the potential to accumulate cash value—which means they’re great for helping pay those large expenses like college, mortgages or emergency costs. It is especially helpful as extra retirement income, as the cash value accumulates over time.
If You Want to Pay Less in Taxes
While taxes are unavoidable, life insurance offers tax benefits that can help manage their cost. Permanent life insurance policies offer income tax-free loans from the cash value of your policy. In addition, in the event of your death, both term and permanent life insurance policies typically provide your beneficiaries with a tax-free death benefit.
Reach out to the Rally team to explore your life insurance options today!