Ways General Life Insurance Can Benefit You
General life insurance is beneficial to protect the future of your family. But, there are many other benefits aside from the obvious death coverage benefit. Here are some additional paybacks of having a general life insurance policy.
Cover Unexpected Expenses
Aside from covering your funeral, general life insurance can provide your family with funds to cover any unexpected expenses, such as debts or other death-related expenses. General life insurance can help your family live financially comfortable, while also covering any costs that pop up, such as car repairs or home needs.
Coverage No Matter What
General life insurance policies offer coverage – no matter what happens in your life. As long as you pay your premiums, life insurance will cover you throughout the term or your lifetime – depending on what policy you choose. Furthermore, if you purchase life insurance when you’re young, it can present financial security for your entire future.
You Pick the Beneficiaries
One of the best benefits of general life insurance is that you can customize the policy for whom you want to benefit. You can determine who your beneficiary or beneficiaries are. You can also determine who would be next in line should one of your beneficiaries die as well.
Most general life insurance policies hold a cash value, which means your money is accessible through a policy loan or withdrawal. This can be sued for business opportunities, to cover major expenses, education, retirement, emergencies and other large expenses. Once you’re life insurance cash value has accumulated, you can generally make a withdrawal to cover an expense.
Not only can general life insurance secure the financial future of your family, it can also provide options for you to access that cash value. As your policy matures, so does your cash balance. Some policies – not all – allow you to access those funds and convert them into an annuity for a lifetime income. You can keep part of the death benefit, withdrawal some of the cash value or simply continue the policy. Regardless, it all presents financial security for your family – and you.
Fewer Restrictions on Withdrawals
Unlike other investment in financial planning, general life insurance policies do not have any restrictions or large fees for cash withdrawals from your policy. Generally, most policies do not have any penalties or required minimums when you attempt to access your cash.
Most general life insurance policies are very flexible, allowing you to adjust your policy benefits and payments to meet your family’s current financial needs. You can decrease the death benefit or adjust your premium payment at any given time. Some policies even allow you to skip payments or reduce them, all depending on what you need. You can also exchange your policy for a different policy.
There are many additional benefits to general life insurance policies, aside from the basic death benefit. General life insurance can secure the financial future of your family – and you!