When it comes to cash value life insurance, the conversation tends to focus on college funding or supplemental retirement income. As a result, other important needs get overlooked.
Consider this: A healthy male, age 30 funding a policy with a $500 monthly premium would have access to approximately $192,000 of cash value in year 20 based on non-guaranteed assumptions of 6.26% and current charges. View the full illustration here.
Funds can be utilized not only for just college funds or supplemental retirement income – but for other liquidity events as well.
Take home improvement expenses, for instance. Say your client needs to make a few renovations to their kitchen or bathroom that is falling apart – where would they get the funds to upgrade?
If they are like me, they might be forced to go through the long, painful process of applying for a home equity line of credit. Then the question is how much can they qualify for, if any – and, what is the loan interest rate?
Cash value life insurance is another option that policy owners can explore when they need funds for home improvements and other liquidity events. In a properly designed plan, life insurance offers easy access to tax free withdrawals and loans with favorable rates.
A client could simply call their insurance company to get step by step instructions for accessing cash without having to go through an exhausting financial qualification process.
Contact your Life Sales and Marketing representative for more about the many uses of cash value life insurance.