Life insurance is considered one of the top must-have coverages. Having a family that depends on your income can add another reason the get life insurance. Your family’s financial needs are covered in case of a family hardship such as death. This can go a long way to help families in their time of need.
Cash-value life insurance can be useful to tap into for other reasons besides the primary need for income replacement. Some people use it successfully to build a nest egg for retirement. Cash-value life insurance is also known as permanent life insurance. This means a cash-value accumulates during the lifetime of the policyholder.
Policyholders can use the cash value in a different ways instead of just letting it sit. Luebbering Insurance Agency LLC, which serves the larger Jefferson City, MO area. We can help you understand the benefits of a cash-value life insurance.
Take out a Loan
If you accumulate a large amount of cash value in your policy and need extra money for sudden emergencies or other expense, it may be possible to take out a loan against your policy. Since it is your own money, only interest and the amount is deducted from your policy in the event of a death. This can be a useful way to utilize your cash-value insurance.
Grow Your Nest Egg
Another way a cash-value insurance policy can be used, is as a supplemental retirement savings. These funds can be used in a variety of ways in your portfolio as a substantial asset. It is good practice to seek advice from a financial advisor before using this option. Having a solidly built policy of several years will ensure you are not draining resources.
Make a Withdrawal
If you need cash quickly, and have a strong cash-value policy, a simple cash withdrawal can be an option. It is wise as always to discuss with a financial advisor or insurance agent before committing to this. Too many withdrawals can leave your policy depleted. But, it is one way the policy be used for immediate needs.
Call and schedule an appointment at Luebbering Insurance Agency LLC, serving Jefferson City, MO. Our specialists can help you with life insurance or any other type of insurance you may need from home to personal.