When most individuals think of life insurance, they think of a payment given to someone’s survivors. While that may be what life insurance is utilized for the most, there are a number of other things life insurance can do as well. Consider these three unique things that you can do with a life insurance policy.
Use it While You’re Still Alive
One of the best alternative uses of life insurance would have to be the fact that you can use it while you’re still alive. One of the ways life insurance can be used is having the ability to tap into the cash value of the policy. IBBC talks about how there are a number of individuals who borrow against the cash value of their policy. Moreover, there are some policies that will allow you to withdraw money against the policy from time to time without affecting the interest rate. Policyholders will often have the option to surrender the insurance and get the full value released back to them.
Take Care of Pets
Ask any pet owner, and he or she will tell you that after a certain period of time, your pet is basically another member of your family. Luckily, with your life insurance policy, there are a number of ways to take care of your pets. Tryon Investments explains that by paying their inheritance into a trust, people can make sure their pets are taken care of. They can’t directly pay their life insurance to pets; however, they definitely can provide for them by setting up a trust.
Unfortunately, trusts that go to pets got a bit of a “controversial” reputation after hotel heiress Leona Helmsley left $12 million to her Maltese dog, Trouble, and nothing to two of her grandchildren. Needless to say, even though that dog’s inheritance was later reduced to $2 million, she didn’t have to worry about where her next meal would come from.
Grow your 401K
The safety of your permanent life insurance policy can also allow you to take a more aggressive stance with your 401K, making you better prepared for your retirement. Life Happens suggests that you can do this by tapping into your life insurance policy for the first couple years of your retirement.
As you can see, there are so many things you can do with your life insurance policy that you probably weren’t even aware of. Do your research, and you’re sure to find even more options.
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