Living Benefits of Life Insurance

October 31, 2011

During a time of loss and need, a permanent life insurance policy can provide your family with a valuable death benefit to help with funeral costs and other expenses you leave behind.

But did you know a permanent life insurance policy has the potential to offer benefits while you’re still living?

Life Insurance Living Benefits

While most people purchase life insurance for the death benefits, permanent life insurance offers additional benefits while you are still alive. These benefits are referred to as living benefits.

Living benefits are life insurance benefits paid to you while you are still living, rather than paid to a beneficiary when you die.

Living benefits can come in the form of policy cash value or optional riders and policy features, providing resources for:

  • College tuition
  • Business planning
  • Disability income
  • Supplementing retirement income
  • Charitable planning

Lifetime Tax Advantages of Life Insurance

During your lifetime, you can also benefit from the tax advantages of a permanent life insurance policy.

Lifetime tax advantages of life insurance can include:

  • Tax-deferred growth potential of cash value
  • No age-related tax penalties when using loans and withdrawals
  • Generally tax-free withdrawals and loans

Want to Know More About Life Insurance Living Benefits?

When considering a life insurance policy, it’s important that you talk to an independent agent with experience in finding life insurance coverage that works for you.

They can further explain the living benefits of your policy and advise you on how to take advantage of them in the smartest way possible.

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