September 01, 2021
5 Ways to Use Life Insurance During Your Own Lifetime
Life insurance is commonly purchased to protect loved ones from huge financial burdens in case of the policyholder’s death. But, did you know that there are plenty of features of life insurance that can benefit the person who is carrying it while they are still alive.
- Paying for Long-Term Care
Life insurance can be used to help with the costs of long-term care from assisted living facilities or rehabilitation and nursing centers like Oak Hill Center for Rehabilitation and Nursing.
- Borrowing Money From the Policy
Typically a feature of permanent life insurance (see below), you are able to borrow against the policy to pay off loans or provide some money when you otherwise might be short.
- Use to Cover an Illness
Permanent policies can provide help for disabilities or a terminal illness. A feature called an accelerated death benefit can allow the policyholder to use funds prior to death to help with their needs.
- Serve as Collateral
Life insurance is considered a financial asset, so use it to your advantage like any other asset you have. You can use it to help get a mortgage or large loan, and it can even be used as collateral in certain situations.
- Help Out a Charity
Some permanent policies can make regular contributions to a charity, while all policies may be able to have a charity be named as a beneficiary or even have the policy itself gifted to a charity.
If you’re interested in any of these features, you’ll want to check with your insurance agent because some perks differ whether you’re carrying whole or universal life insurance (permanent) or term life insurance (good for a certain number of years).