Why a Life Insurance Policy is More Than a Benefit for Your Heirs

A life insurance policy is often thought of as something that leaves behind money for your heirs. However, it’s actually an excellent financial asset that you can use in various ways throughout your life. At North Georgia Insurance Center in Commerce, GA, we’re here to show you how a life insurance policy can work for you during your lifetime.

How a Life Insurance Policy Becomes a Financial Asset

A permanent life insurance policy with a cash value accumulates value over time. It has a guaranteed minimum return that builds up its value as time passes. The two most common types of life insurance that generate a return are known as whole life and universal. Some of the things you can do with these policies include:

• Borrow against its value
• Use the policy for loan collateral
• Draw funds against the existing balance
• Use accelerated benefits to pay for a medical need
• Cash out the policy altogether

Turning the accumulated cash value into an annuity that pays out regularly is also possible. This gives you a steady stream of income to fund your retirement or other life goals.

Understand the Impact of Using Your Life Insurance Policy

Drawing down on your policy while you’re alive can impact the amount your heirs receive when you pass. Make sure to discuss this issue with your insurance agent to understand the benefits and drawbacks of using your policy in this way.

Contact Us at Our Agency in Commerce, GA to Learn More

A life insurance policy is a stable investment vehicle that you can use throughout your lifetime for various needs. At North Georgia Insurance Center, we can help you learn more about your options, the different types of policies, and how you can make a policy into something more than a benefit for your heirs.