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Can Life Insurance Help Your Overall Wellbeing?
Death. Not really a fun topic, is it? And when someone starts talking about life insurance, the natural thought always turns to death. But life insurance coverage doesn’t need to be a conversation about what happens when you pass away. With a permanent policy, you can focus on many aspects of life while you’re still alive, including your wellbeing. So if you’re wondering “can life insurance help with your well-being”, we’ve got some good news for you.
Read on to find out why life insurance is all about the good vibes.
For starters, it’s more than just life insurance
Peace of mind is great, and it really helps with your well-being. Sure, a life insurance policy gives you a death benefit to protect your loved ones in the event of your passing (which is peace of mind in itself), but it also gives you added security during life.
A life insurance rider can enhance coverage with aspects like long-term care and accelerated death benefits. Losing your income can be incredibly stressful should you be unable to work due to illness or injury. A life insurance policy helps with such scenarios.
With a good rider, you can access the death benefit early and use it as a form of income. Then there’s the long-term care rider, which will guarantee the proper care options for you later in life. This is especially helpful if you can’t rely on people to look after you in your older years.
Thinking about the future isn’t easy when we’re all so invested in the present. But strategic riders can make life insurance good for your wellbeing. Because should a difficult situation emerge out of the blue–like an illness–you can at least take some comfort knowing you’ll be well looked after thanks to a life insurance policy with suitable riders.
It’s a wealth builder, too
You may or may not know already, but a permanent life insurance policy acts as a way to build wealth alongside helping your loved ones financially when you die. With permanent life insurance coverage, you can reap the rewards while you’re still alive and improve your well-being by building a nest egg for the future.
How does it work? When you take out a permanent policy, there are two payable components (though it’s taken as one payment): death benefit and cash value. Both of these increase over time, and you can access the cash-value element while you’re still alive and spend it on whatever you want.
Essentially, a perm policy becomes a form of investment account, with a 6%-8% annual growth rate. Even better, the money you withdraw is tax-free–a feature most savings accounts can’t replicate. You can choose to invest in a high-interest savings account or public equities, whatever you wish, and change your investment options over time without any tax liability. Use it to pay for the kid’s college, to put a down payment on a new home, or as additional income in your retirement.
One way of drawing down the wealth you’ve built involves taking it out as a loan against yourself at 0%. When you die, the death benefit pays back the loan, with the rest going to your beneficiary. You can’t pay tax to yourself, which means your wealth accumulation is tax-free.
And there’s long-term value with no changing premiums
There’s nothing quite like financial stability to improve your wellbeing. Health and wealth, as they say. With a permanent policy, you can enjoy financial stability while protecting your loved ones and building wealth.
That’s because the premiums on a permanent policy remain the same throughout the entire coverage. As a result, you’ll pay the same amount at 30 as you would at 60. A permanent policy doesn’t expire either (hence the name), so you’re locked into the same premium for as long as you have coverage.
It’s completely different from a term policy, where you only have a premium for a fixed time. Once a term policy comes to an end, you’ll be charged new premiums at your renewal age should you decide to extend the coverage. A term policy also doesn’t allow you to build wealth– it gives you a death benefit for a set period of time instead.
There’s also the security, just in case the worst does happen
Ok, so no one wants to be that person who mentions the D-word. But sometimes bad things happen, and we need to deal with them appropriately. Having life insurance in place can make facing the aftermath of your death much easier for your loved ones–at least from a financial point of view.
The death benefit sets them up financially. And while financial stability might not help with losing you, it will stop them from facing issues regarding mortgage payments, debts, and general day-to-day living costs–especially if you have people who depend on you.
It’s not uncommon for people to have immediate issues paying for expenses when a loved one passes away. However, with a life insurance policy in place, everything can be a little bit easier to navigate from a financial perspective when you’re not around.
Permanent life insurance covers you all the way until the inevitable day, no matter how long you live. This means your beneficiaries are guaranteed the death benefit and you can live knowing that you’ve guaranteed your loved ones a certain amount of wealth and legacy.
In conclusion: can life insurance help with your well-being?
If you want an element of peace in your life and like the idea of not having to worry about what might happen when you’re not around, a life insurance policy is just what you need. On top of that, you’ll benefit from other elements, like wealth accumulation that can help you find some zen while you’re still alive. Peace in life and in death. What more could you ask for?