You may use the benefits of life insurance to support your entire life and the dependents. Life insurance provides a financial safety net to provide for your loved ones when you pass away. The life insurance at https://sogoinsurance.com/san-antonio/life-insurance/ offers additional benefits when used strategically.
Permanent life insurance supports broader financial goals and provides a way to build wealth. In addition to that, it leaves a legacy and manages taxes that help cover long-term care costs.
Brief understanding of permanent vs term life insurance
Life insurance comes in different forms and each has unique benefits. There are two main life insurance policies to choose from, they are:
- term life insurance
- permanent life insurance
The term policy offers protection for a specific time, while the permanent policy offers long-term coverage.
Protect loved ones
Life insurance provides the money to the beneficiaries when the insured person dies. The beneficiaries use the income-tax-free death benefits for future expenses, such as:
- pay off a mortgage
- finance a child’s education
- maintain their lifestyle
Adequate life insurance is important to help prepare for the unexpected expenses.
Build wealth
A permanent life insurance cash value can be used by using life insurance as a long-term wealth tool. The premiums will be paid into a cash value policy, which can earn interest or returns on a tax-deferred basis. The cash value is paying for the costs in the policy. The excess cash value grows over time and it is accessible to you throughout your lifetime.
There are types of permanent life insurance, such as:
- whole life
- universal life
- variable life
- variable universal life
Each type uses a different approach to grow the cash value. Some policies are more exposed to the market, while others are not dependent on the market returns.
Helps pay for long-term care
Traditional long-term care insurance offers a way to cover the cost of care when needing assistance with daily activities. If you are concerned about the possibility of not needing life insurance coverage. The policy includes chronic care or long-term care benefits, which is an alternative solution.
Conclusion
Life insurance helps pay for your long-term coverage expenses. You can also preserve death benefits for the beneficiaries if you do not end up needing care. You must have a permanent life insurance policy to take advantage of some options. As an insured person, you are not only securing your financial future but also your family member once you are gone.
