The cash value and dividends in your whole life insurance can help pay more than funeral costs.
It seems as though the semesters run one into another and the bills just keep coming. Paying for college seems never to end. The good news is, since we have life insurance we don’t have to borrow a lot in student loans or pay high interest rates to a bank for parent loans.
What does life insurance have to do with it? Over the years we’ve paid into our whole life insurance policies building tax deferred cash value. The cash value accrues dividends and our money has compounded faster than any savings account we could have invested in. When it came time to send our kids to college we were able to use those funds in the form of policy loans and dividend withdrawals. Coupling the policy loans with what we were able to put into college savings plans we were able to avoid having to borrow from the bank in student loans.
When we started planning our family we hadn’t thought about using our life insurance policies as part of our financial plan. We each had purchased whole life policies on our own before we were married and had maintained them. As our family grew we added more life insurance for our children and found out what we could use the cash value and dividends for. Those policies have more than paid for themselves over the years because we could use the dividends for so many of life’s ups and downs.
Over the years there have been many times when we’ve opted to take a policy loan rather than use credit cards or borrow from the bank. We were able to take out a loan against the cash value to help pay for unexpected home repairs, which was less costly than a home improvement loan. In paying that back we now have enough to help pay for our children’s tuition.
As long as the policy is in force the death benefit will never decrease and will still be there when we need it most. Not only do we have the versatility and freedom to use the cash value and dividends as living benefits, but there is so much more to our whole life insurance as well.
Find out more about the benefits of a whole life insurance policy by calling your AC Financial Adviser at 877-435-2283
