Many clients think that life insurance is just a monthly bill that they can only use to cover their own death. But little do they know that more than that, there are other creative ways to use their life insurance while they are still alive. This form of benefit is recently offered by most insurance companies to honor the policyholders or the insured persons and to let them feel the perks of their policies. Here are the living benefits that you didn’t know your term or whole life insurance could give you.
Reduce retirement taxes
Earning more money is equivalent to a higher range of tax bracket. But if you have your life insurance policy, then you won’t have to worry about paying for expensive retirement taxes from your pension in the future. Your life insurance can help you reduce retirement taxes through cash value supplement. This means that you can use your cash value in covering any partial amount of your tax. In fact, retirees with life insurance policy can save up to 35% from tax payments compared to those who are not insured. The cash value works similar to a dividend that is usually distributed to the clients assuming that all premiums are paid. However, there is no guaranteed or specific amount of cash value as it may grow or reduce according to the company’s market performance.
Apply for loans from the cash value
Aside from reducing your retirement taxes, you can also use your accumulated cash value as a source of loans. The insurer will not set a schedule for your repayment but you have to be minded that it may take between 5-9% interest charges from you. The accumulated charges will then reduce the benefit after death. That’s why a lot of people are torn between options of borrowing or withdrawing their accumulated cash value. Nonetheless, the good thing about keeping your cash value stored is to let it grow in order to take bigger dividends in the future.
A source of fund for certain health problems
From reducing retirement taxes to borrowing or withdrawing your accumulated cash value, your life insurance can also provide you with a source of money to address certain health problems especially if you have been disabled due to an accident. This type of assistance may vary depending on the type of policy you have and the extent of its coverage. It doesn’t really cost you charges as long as there is an insufficient fund stored in your policy. Rely upon the cases below:
For insured persons with disability – the provided benefit that covers a vital safety net funding is often presented to disabled members who are not yet capable of working. The fund includes the settlement of their hospital bills.
For insured persons with chronic diseases – members with incurable diseases can also expect the same benefit. They may also receive half of their final payout in advance if the doctor confirms that they only have a year or less to live.
Return your money after the expiry date
This feature is only available to members with term life insurance policy. This gives the insured an option to take their accumulated premium only if they do not die after the expiry date of their policy. The term usually runs between 10 to 30 years after the date of purchase. But you can also choose to renew your policy every year until you reach the age of 95.
Sell the policy
Selling the policy in exchange of cash is possible but not everyone is entitled to do so and not everyone is eligible to purchase a plan. This only shows that the process of selling the policy, also known as a life settlement, comes with certain conditions. You can only sell your policy if you were able to deposit the required face value or the amount of your lump sum premium (depending on the type of policy and the insurer’s protocol). Majority of sellers are senior citizens with ages 65 and up or the ones who have terminal diseases. The policies are then sold to reputable companies in replacement of payment which typically costs 20% to 25% of your death benefit. Although that is pretty cheap for you, especially if you have been paying premiums for half of your life. The only thing that makes life settlement beneficial is to keep your policy from lapses (if your reason for selling is you can no longer pay for premiums). So it’s either you take it or leave it.
Searching For A Cost-Effective Car Insurance
How to get your insurance cost on the low and obtain the best price.
Getting the best price for your car insurance implies that you obtain it at a very low and fair price. However, this can be quite complicated to understand considering the enormous number of available options. Therefore, it is vital to consider the following points when shopping for a suitable alternative.
Be aware of the limitations associated with your lowest priced policy
The protection you require such as after an accident might not be covered in your lowest-priced policy. Getting a few discounts from a low-priced coverage can end up increasing your costs, especially after paying for repairs out of your pocket. In the end, insurance has no benefit if using it gets worrisome.
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Understand the impact of your policy on your price.
It is vital to be aware of the impact the cost of your insurance and coverage has on your price. In simple terms, a low-priced coverage might have a lower cost, but offer less protection when required. Modifying the cost of your collision deductible might also affect your monthly premiums. Although, several coverage options are available, requesting a quote will enable you to select the best option that will suit your needs.
Make the most of every available discount
Requesting for a quote will help you recognize the special savings discount associated with your policy, auto, and life. Several saving options available are:
Combining your Home and Auto coverage.
Becoming a New Liberty Mutual Member
Integrating Auto Safety Features.
Insuring various cars.
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Be aware that your decisions have an impact on your price
Your insurance costs are determined by your preferred plan, and coverage, but several actions can be taken to reduce your insurance cost.
Uphold an excellent driving record and credit-dependent insurance score
Additional costs can be incurred from accidents, points, and tickets on your license. You can reduce your costs by maintaining both good credit score and driving record and can also reduce it in the long run. Also, there are some cases where these points can be reduced by taking driving classes. This is applicable to you and the drivers on your insurance coverage.
Maintain a minimum insurance claim.
We are already aware that accidents can occur at any time and we are always here to help, but there are some actions that must be taken to prevent damage to your vehicle during an accident such as maintain traffic laws. Generally, lower claims or maintaining a claim-free record can help reduce your costs.
Be aware of the cost of replacing and repair before purchasing your next vehicle
The cost of repair or replacement for some vehicles after an accident is usually very high which simultaneously increases coverage costs.
Select a company that offers the best value for money
Obtaining the best value for your money is connected with amazing customer benefits and excellent coverage. We have been providing top-notch insurance coverage with remarkable customer service for over 100 years at the lowest price possible online and face to face. Ultimately, the only thing that matters most is the company that you can rely on when you are in dire need.
Ready for a quote?
Our simple process only requires basic information to generate a quote in less than 10 minutes. You can easily select the most sensible coverage plan and cost that will perfectly fit your individual needs and go ahead with the purchase later.
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The author holds a bachelor’s degree in Communication with expertise in certain fields like advertising and media marketing. She currently works as a web content contributor for Insure Me Now Life Insurance, an award-winning life insurance company in Australia. What motivates Sarah to keep writing is her passion of providing information to all readers out there.