Life insurance can be expensive, but you wouldn’t want to risk your family’s future. When the unexpected happens, your coverage will help you pay bills and other finances.
So, if you’re looking for ways to get the cash value of your life insurance, this guide will give you 6 strategies. Before that, here’s a quick refresher on cash life.
What Is Cash Value Life Insurance?
Cash value life is permanent life insurance that provides death benefits and accumulated cash value over the policyholder’s lifetime. You use your cash value to purchase a private investment, pay for premiums and give benefits to your successors.
There’s more you need to know about cash life. Just in case you don’t want to benefit your heir, you can access the accumulated cash. How? By taking out policy loans or withdrawing small amounts.
What Should You Do?
Listed below are options you can make out of your cash life insurance. Plus, 6 strategies on how to get its cash value.
Strategy 1: Withdraw an amount
The first strategy is to cash out an amount. You can do this if you’re low on wiggle-room in your budget or you need an emergency fund. Some policies allow large amounts and can also give you the option to withdraw everything.
Strategy 2: Take out a loan
The next is to take out a loan. Unlike banks, insurers do not put high interest on borrowed money. However, take note that this will result in a reduction of your death benefit.
Strategy 3: Pay insurance premiums
Paying insurance premiums is the third strategy. Once you’ve accumulated sufficient cash value, you can now use it to pay premiums.
Strategy 4: Raise your death benefit
You have to use this strategy to increase your death benefit. In return, its cash value will also increase.
Strategy 5: Nest your egg
The fifth strategy is to use the cash value to supplement your retirement income. Once you’ve accumulated a decent amount, you can put it up as an asset to your retirement plan.
Strategy 6: Full submission
Lastly, you can always have the option to surrender your insurance and get the accumulated cash value.
Cash-value life insurance offers a lot. If you’re thinking of taking it out for use, you can choose among the 6 strategies.
At Roper Insurance Services, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (828) 697-6709. Get your free quote today by CLICKING HERE.