Life insurance for most people is a way to guard against the loss of a loved one, however there are many benefits that go unnoticed here are a few.
One of the first benefits is the preservation or acquisition of assets such as a home, car or starting a business. Walt Disney took out a loan against his life insurance policy to start Disney World.
Another use involves the accumulation of wealth during the owners' lifetime. This is a two part process, the first part is done thru "over-funding" the policy, where the insured pays more than the required premium to keep the policy in force, the extra premium is used to grow "cash-value" in the policy. Now there are government and state guidelines that regulate this, which is why it is important to have an agent who knows what they're doing.
Now that we are growing wealth, how do we protect it ? Insurance is uniquely designed to protect your wealth in several ways other financial vehicles are unable.
Life insurance avoids probate and taxes.
Money can be accessed before age 59 1/2 without taxes or penalties.
In many states life insurance is protected from bankruptcy and creditors.
If tied to and index, it is protected from market downturns.
Life insurance cash value are not included in FAFSA calculations.
These are just a few of the many benefits connected to a life insurance policy and why you should use an agent that is knowledgeable and cares about your financial future as well as that of your family. We care about you and your family at Hines Life and are here to help.
Comments