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10 Surprising Facts About Life Insurance That Will Change Your Perspective

10 things about life insurance that will change your perspective

Life insurance is an important aspect of financial planning, but many people don’t fully understand its benefits or how it works. In this blog post, we will share 10 surprising facts about life insurance that will change your perspective.

  1. Life insurance can provide for your children’s education – Many parents take out a permanent policy while their children are babies and grow the cash value over time. When their children are ready to go off to college, the cash value in the policy can be used to fund their education. Once the child is out of college and able to financially support themselves, they take over paying the permanent policy and end up with a healthy tax-free source of funds which has been compounding interest over the years that can used in retirement. We call this the “Million Dollar Baby” plan.
  2. Life insurance can be used to pay off debts – If you have a permanent policy, you can generally borrow on the cash value of your life insurance at a low rate and use the money to pay off debts or invest in other opportunities. The life insurance cash value continues to accrue interest as if the money was still in the account.
  3. Life insurance is not just for the elderly – Many people believe that life insurance is only necessary for older adults, but that’s not the case. Young adults and parents of young children should also consider life insurance as a means to protect their loved ones in the event of an untimely death.
  4. Life insurance can be an investment – Some life insurance policies offer an investment component, which can allow policyholders to build cash value over time. These policies can provide both protection and a means of building wealth.
  5. You may be able to get life insurance without a medical exam – While most life insurance policies require a medical exam, some policies are available without one. These policies are typically more expensive, but they may be a good option for those who cannot or do not want to undergo a medical exam.
  6. Life insurance can be more affordable than you think Many people overestimate the cost of life insurance, but policies can be surprisingly affordable, especially for young and healthy individuals. In general, the younger and healthier you are, the lower the cost of insurance since the risk is lower.
  7. Life insurance can be tailored to your specific needs – There are many different types of life insurance policies available, and they can be tailored to fit your unique needs and circumstances. A qualified insurance agent can help you determine which policy is right for you. As an independent agent, I work with several insurance companies to find the right fit for your unique needs and circumstances.
  8. Life insurance payouts are typically tax-free and avoid probate – Unlike many other types of income, life insurance payouts are typically tax-free. This means that the full amount of the payout can be used to support your loved ones quickly and do not require you to open probate and for the court system.
  9. You can buy life insurance online – Many insurance companies offer the ability to purchase life insurance online, but I do not recommend it. You don’t know what you don’t know and in this case, it could end up costing you. Consult with a licensed agent who listens your needs and knows the right questions to ask you to make sure you are getting the right type of coverage and the right amount of coverage.
  10. Life insurance can provide peace of mind – Perhaps the most important benefit of life insurance is the peace of mind it can provide. Knowing that your loved ones will be taken care of in the event of your death can be a tremendous comfort. If you own a home, have children, own a business, or if anyone financially depends on you, don’t wait! If something happened to you today, would your family struggle financially or would they be ok?

In conclusion, life insurance is an important aspect of financial planning, and it’s important to understand its benefits and how it works. We hope that these 10 surprising facts have changed your perspective on life insurance and helped you understand why it’s such an important investment in your family’s future. If you have any questions or would like to learn more, please contact us today.

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