The purpose of life insurance is to provide your beneficiaries (which is usually your spouse and children) with a financial lifeline after you have passed away. If you happen to be the breadwinner of the family and your spouse does housework and cares for the children, your life insurance may be the only source of income your spouse has after you die. This, however, is not the only way life insurance can benefit you. In fact, here are some other ways you can use life insurance.
1. Fund Your Child's College Education
Over a period of time, your insurance policy will accumulate a cash value. You can borrow money against the cash value of your policy and use this money to pay for your child's college education. Technically, you can borrow money against your cash value and use it for anything. The key thing to understand is you are not asking for a loan and you do not have to fill out any financial aid forms. You just have to ask for the money and it will be given to you.
Keep in mind, borrowing money on the cash value of your policy will cause your death benefits to go down. For this reason, you should consider discussing your plans with a financial advisor before making any decisions.
2. Access Some Funds Earlier if You Are Chronically Ill
For a person who is chronically ill, life insurance is extremely beneficial as you can use it to provide a financial lifeline to the family you leave behind; and you may be able to get a portion of it before you pass away to pay for medical expenses or fulfill one of your dreams.
3. Take Time Off to Care For a Sick Relative
Do you have an elderly parent who is ill? Maybe an aunt and uncle? Perhaps it is just a close friend who has become ill? You could also borrow money on the cash value of your life insurance policy and use it to take time off work and care for a sick friend or family member. You can use the money to pay for your bills and anything else you need to care for the sick relative.
In theory, you could borrow against the cash value of your life insurance policy and spend the money on just about anything. Taking time off to care for someone you care about, funding a college education, and accessing the money early if you are sick are just a few of the options available to you. Contact a business, such as Advantage Insurance Agency, Inc, for more information.