Cash out from your Life Insurance policy while you're living.

Many people don’t know that Life Insurance can come with many benefits including funds you can use while you’re alive to do things like buying a home, paying for children’s college fees, covering emergency expenses or just travelling the world and enjoying life. This is because life insurance is often associated with providing financial security for your loved ones after you've passed away through a Death Benefit – which is a lump sum paid out to your beneficiaries in the event of your passing. However, it's important to recognize that life insurance can offer a range of benefits that extend beyond just providing a death benefit.

Let's talk about some of the various “Living Benefits” of life insurance:

Cash Value Accumulation: Many life insurance policies, such as whole life and universal life insurance, come with a cash value component. This cash value grows over time, typically on a tax-deferred basis. You can borrow against or withdraw from this cash value while you're alive for various financial needs, such as buying a home, starting a business, or covering emergency expenses. Term life insurance does not allow for cash value accumulation. Read more on the difference between Universal Life and Term Life insurance.

College Funding: Life insurance can be used as a college funding tool. By taking out a policy early in your child's life, you can accumulate cash value over time, which can then be used to help cover their college tuition and expenses. See the pros and cons of saving for your kids’ college fund using an RESP and a life insurance policy.

Emergency Fund: The cash value in a life insurance policy can serve as an emergency fund. In times of unexpected financial crisis, you can tap into this resource to cover medical bills, repairs, or any other unforeseen expenses.

Estate Planning: Life insurance can be an essential component of estate planning. It can help you provide a tax-efficient inheritance for your heirs, ensuring that your wealth is transferred smoothly and with minimal tax liability. See Estate Planning with Life Insurance for more details.

Supplemental Retirement Income: Some people use life insurance as a way to supplement their retirement income. By strategically withdrawing funds from the cash value, you can enjoy a source of income during your retirement years.

Legacy and Charitable Giving: Life insurance can be a means to leave a lasting legacy or support charitable causes that are dear to your heart. You can name a charity or foundation as the beneficiary of your policy.

Travel and Enjoyment: Yes, you read it right. Life insurance can also be a source of funds for your personal enjoyment. Whether it's traveling the world, pursuing hobbies, or fulfilling lifelong dreams or checking off items on your bucket list, the cash value in your policy can provide the financial means to do so.

Finally, the peace of mind that life insurance offers can transcend beyond the financial benefits. Knowing that you have a safety net in place for your family's future and that you can access funds when needed can reduce financial stress and allow you to focus on living life to the fullest. If you're inspired to take action to secure a better future for yourself and your loved ones, reach out to me for a free no obligation consultation. As the saying goes, the best time to plat a tree was 20 years ago. The next best time is now.

Take action now!