The Top 5 Things you Didn’t Know About Life Insurance Policies
More than likely you’ve heard about life insurance policies and know that they’re insurance payable to a beneficiary when the insured passes away – provided the premiums are paid regularly, and there are no misrepresentations on the insurance application. But, there is much more to life insurance policies, and below we are going to look at the top five things you didn’t know.
- Investment Opportunities With Permanent Life Insurance Policies
With permanent life insurance, there is an investment component, thus cash value loads are an option. With these loans, you can borrow money against your life insurance policy for anything you want. If you choose not to pay yourself back, the death benefit is simply lowered proportionately before your beneficiaries are paid.You can choose to pick you own investments or let the insurance company manage the investments. Some whole life insurance programs have a long history of paying dividends to policy holders for more than 165 years in a row. Once a dividend is allocated to a policy holder, the value cannot go down…unlike a traditional investment.
- Life Insurance Proceeds are – Probate Free
Unlike other assets, life insurance policies don’t need to go through probate court (which can take years) so the beneficiary (unless the beneficiary is your estate) doesn’t have to wait. They are paid as soon as the insured passes away and the death is verified, all terms of the policy are satisfied (such as no foul play), the premiums are paid, etc.
- Accelerated Benefit/Terminal Illness Rider
An accelerated benefit rider is a life insurance product that allows you to use a percentage of your death benefit if you’re diagnosed with a terminal illness (and are expected to pass away within 12 months of your diagnosis). This money can be used to help with living and medical expenses, and can help your family remain financially comfortable during this challenging time. *Important: This is not available on all policies and should not be a substitute for Critical Illness Insurance.
- Decreasing Premiums/Death Benefits
As you may or may not be aware, term life insurance policies have a death benefit for a set time period. For example, until your children are finished college; and after the term, the policy ends. However, you can design your policy so your death benefit decreases over time, or your premiums decrease.
- A Gift for Your Favorite Charity or Church
You don’t have to name an individual as your beneficiary. You can designate your life insurance policy to your favorite charity or church.
As you can see with the top five things you didn’t know about life insurance, you have a lot of options. Thus, you can design a personal policy as simple as you want, or as complex as you need. As well, your life insurance policy is part of a diversified and balanced financial plan – and helps your beneficiaries when they need it most.
At Shelter Bay Financial Corp., we are life insurance experts and offer our clients services and advice online and by phone. We can even complete your application via screen share so you can see the process step-by-step from the comfort of your own home. We’ll design the plan that best suits your needs, health and budget.
To learn more, please call our toll free number 1.888.498.5288.