Sometimes it seems like things happen at the most inopportune times. The other day, getting ready to leave for work, the low tire sensor let me know I had a flat tire. That wasn’t bad by itself, but when I got to the tire store, I was informed that all of my tires needed replacing, at $600.00. Later that weekend, during high winds and thunder storms a tree blew down in the yard causing some damage to the roof. Our home-owners will cover that, but the tree removal cost us $1,200. It seems like one thing after another.
Rather than use a credit card and pay high interest rates and fees over time, we opted to borrow against the cash value from our life insurance policy. For years we’ve both had permanent life insurance that has earned cash value and dividends. Those policies are like savings accounts that we can use when life’s ups and downs happen. Whether for minor emergencies like replacing the tires on the car unexpectedly, or for a downed tree, or even to help send one of our children to college; we have tax-deferred funds available to do that.
Permanent life insurance, whether whole life or universal life has advantages in that you can use the benefits while you are living, and as long as the premiums are paid up, the death benefit remains. As a matter of fact, one of the benefits of permanent life insurance is that you can use the cash value in your policy to pay the premiums. There are many other benefits, too, the best of which is the tax-deferred savings.
Unlike bank savings accounts and 401K accounts, our permanent life insurance policies build tax-deferred cash value. Although we have to follow the advice of our AC Financial Adviser, we don’t get a 1099 or any penalties for using the cash value in our life insurance to cover the things that happen in life.
Learn more about cash value and permanent life insurance by calling your AC Financial Adviser at (877) 435-2283. Get the living benefits out of your life insurance.