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Many people view life insurance as a necessary monthly expense, often forgetting the many advantages their policy offers while they’re alive. Read on to see how your policy can protect your loved ones and your finances throughout your life.
Living benefits are a type of life insurance rider and a popular option for individuals who want to reap the benefits of their policy while they are alive. Living benefits allow for a portion of the policy’s death benefit (the lump sum your beneficiary would receive if you were to pass away) to be paid in advance in certain situations.
Popular living benefit riders include chronic illness benefits, which are paid out if you are unable to meet two of six daily living activities, and a long-term care benefit, which could be used to cover expenses later in life.
You may also consider a waiver of premium rider, which could allow you to skip premium payments on your policy if you become disabled and cannot work. While living benefit riders can increase your monthly premium, they can provide safeguards for your income if you face an unexpected injury, illness or diagnosis.
Life insurance can also be used to save for retirement. If you already have retirement vehicles such as a 401(k) or IRA, but you’re looking to improve your retirement savings, an annuity would be the perfect fit.
With an annuity, you won’t have to withdraw a specific amount each year as you would with an IRA, and you won’t have to face the risk of market loss in the event of an economic downturn. During the accumulation period, you would make a lump sum or series of regular payments to fund your annuity. When you’re ready to start receiving payments, you would “annuitize” your contract and the insurance company would provide payments on a schedule you choose.
Your annuity payouts could contribute to medical expenses, a mortgage, a vacation, or a child’s college education. Annuities can also supplement payouts you receive from other retirement funds or Social Security.
Pay off debts
You might be wondering how life insurance can help you become debt free – and the solution is Debt Free Life. This program has been modernized to meet the needs of individuals by harnessing the cash value of a permanent life insurance policy.
Instead of borrowing from a bank and paying interest, you can use funds from within your life insurance policy to eliminate debt and build wealth over the years.
Debt Free Life can help you pay off many types of debt in a way that makes sense for your budget and goals, including credit card debt, mortgages, student loans and auto loans.
With Debt Free Life, you will receive a personalized debt elimination report to see when each of your debts will be paid off. You will also see how much money you can have in savings at the end of the program, plus the amount of interest you’ll save over the years.
Ready to get started? Schedule a free virtual consultation with a Quility insurance advisor today to get on track to financial freedom.