Permanent Life Insurance - A Financial Lifeline You May Have Forgotten About
COVID-19 has thrown everyone's life's upside down. With social distancing requirements, many businesses across every industry are feeling the pinch. Restaurants, bars, and retail shops are closed, or operating at a fraction of their normal capacity. This has caused the people who own those businesses, or the employees who work there, or the suppliers who work with them to be thrown into financial peril as a result. On top of worrying about getting sick, the financial strain is just as stressful.
This is a good time to shine a light on one of the numerous benefits that life insurance can provide you. It can be so much more than just a death benefit. It can also be built to provide many living benefits to you as well.
So let's talk about one of these benefits that permanent life insurance policies provide, and that is cash value. One of the reasons people buy this type of life insurance product is because it offers lifetime protection. As long as you continue to pay the premiums, the coverage will stay in place for life (unlike term insurance, which is in place for a set period of time such as 5 years, 10 years, etc.) Want a refresher on the differences between the different types of life insurance products out there? Click here.
Many times with permanent insurance policies, they're a "set it and forget it" solution. But the beauty of this powerful financial tool is what it does steadily over the years when you're not paying much attention to it: It's building cash value. This is money that you can tap into now to help you get this through periods of financial uncertainty if needed. Since this is your money, there are no stipulations as to what you can pull it out for. Whether you need to pay bills, replace an appliance that finally died, or get a new car. Maybe you're a business owner and you need money to cover payroll, or buy needed equipment to continue operating. The cash value in your permanent life insurance policy can be leveraged to help you do what you need to do. (Remember that if you withdraw or borrow funds from your policy, it will reduce the cash value and the death benefit if not repaid. Your agent or life insurance company can walk you through what these new numbers will look like if you pull cash out. It doesn't hurt to ask).
Leveraging permanent life insurance policies to start a new business, or keep one afloat is nothing new. It's been happening for over a century. Want to learn more? Click here to learn about 6 famous brands that were either started or saved by life insurance.
This may not be a benefit of this type of policy that you remember discussing with your insurance agent when you initially purchased it, but this is absolutely one of the reasons why they wanted you to have this type of coverage. So that right now, in a time like this where an unexpected financial crisis has hit globally, you would have access to a source of cash to sustain yourself and/or your business until we all get to the other side of this.
If you already have a permanent life insurance policy in place, and you want to look into accessing the cash value inside the policy, contact your agent or life insurance company today and ask them to walk you through the process of accessing it, as well as how it would affect the policy if these funds were not put back into the policy. Don't have a permanent life insurance policy? Maybe now you see the benefits of this type of coverage and you will put something in place so that if another unexpected financial hit comes in the future, you'll be okay.
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There's no better time than now to make sure that you and your family are protected.
Call Tenaya Insurance Services at (925) 322-8073 today!