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septiembre 19, 2024
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The Benefits of Life Insurance Beyond the Death Benefit

Many people know the importance of life insurance and its critical role in providing for their families following an insured’s passing. However, while life insurance is often associated with the death benefit it can provide to beneficiaries, its advantages can often extend far beyond this primary function.

Additional Advantages of Life Insurance

Beyond the direct payout that beneficiaries may be able to claim, individuals and families should consider the following potential benefits offered by the right life insurance policy:

  • Living benefits—Many life insurance policies come with living benefits, which can allow policyholders to access a portion of their death benefit while still alive. This can be particularly useful in cases of terminal illness, chronic illness or long-term care needs. These funds can help cover medical expenses, home modifications or other costs associated with serious health conditions.
  • Cash value—Permanent life insurance, such as whole or universal policies, can build cash value over time. These funds can then be borrowed against with minimal consequences. Policyholders might also use these funds to help pay their premiums or invest them in various stocks and bonds.
  • Tax advantages—Life insurance policies can offer several tax benefits. The death benefit is generally paid out tax-free to beneficiaries. Additionally, the cash value growth in permanent policies is typically tax-deferred, meaning policyholders do not pay taxes on the gains. Loans taken against the cash value are also often tax-free. life insurance
  • Financial security—Life insurance can serve as a financial safety net, providing peace of mind to policyholders. Knowing that their loved ones will be financially protected in the event of their death can reduce stress and allow individuals to focus on other aspects of their lives.

Life Insurance in Center, TX

Contact Shoop Insurance today to learn more about life insurance options and ensure you and your family can reap the benefits of ideal policies.

 

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information. 

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