Let's first understand the 2 types of life insurance. The first is term life insurance. This provides protection for a specific duration or term. It ranges from around 10-30 years. If you pass away within the term, then your benefits can be claimed.
The second type is permanent life insurance. This type of insurance offers you lifelong protection as long as you pay premiums. Since this lasts a lifetime, it accumulated cash value.
It is this cash value that you can use to fund yourself, even if you are still living. As time passes, your policy will accumulate cash value which you can borrow to fund many things needed in your life. Let's take a look at some examples below.
Use it as a student loan
One of the first major expenses you will have is for your education. We all know education is expensive but essential. Bank loans, financial aids, and others can be difficult. Borrowing against the cash value of your policy can help fund this instead.
Use it to start a business
When you are done with your studies, and you are now a responsible adult, the next step is to work. You can look for a job, or start your own business. Starting your own business is risky and will require some capital. Depending on the business you are entering, it can require quite a sum. This is another avenue you can use the cash value of your life insurance.
Use it in case of an emergency
Life can sometimes throw you a curveball and give you something you did not expect. From an illness to you or a loved one, to losing your main source of income, your life insurance can help.
Remember that using or borrowing from the cash value of your life insurance policy can affect your death benefits. However, it is comforting to know that you have another source of protection from your life insurance. This is true even if you are still living. At American Trust Insurance, we put our clients first by offering them policies that they can afford. Learn more about our products and services by calling our agency at (305) 270-2220. You can also request for a free quote by CLICKING HERE.