How to Utilize Cash Value Insurance

cash value insurance

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Utilizing cash looks different for everyone. What’s great about owning a cash value insurance policy, also known as whole life insurance,  is that when you are ready to utilize the liquidity there are no restrictions. You can use the cash for anything you want or need, and the liberty of being able to use the cash value makes for a myriad of creative uses.

However, besides using the cash from your policy to purchase things, like a home or a car, you can also utilize your cash value to help with proper estate planning.

Cash Value Insurance and Estate Planning

Say you own a piece of property with considerable value. Maybe that property is a second vacation home, or a cabin that your family has used for years. Or maybe the property serves as an investment to supply a passive income.

Regardless of the property’s purpose, you are trying to plan out your estate and are wondering how to divide this asset between your heirs. How do you do it? One way to settle the score without causing family rifts would be through your cash value insurance policy.

Your Real Estate Divided: How Life Insurance Can Fund a Bequest

Let’s say your land values at $1 million. Your first thought is to bequeath the property to your spouse, but you realize that most of your fortune is wrapped up in this hard asset, and you’d like to leave something to your kids as well.

To literally ‘divide’ your property evenly amongst your family, you take out a life insurance policy that matches the value of your real estate. When your surviving spouse passes, your children still have the property and the death benefit.

Cash value insurance is exactly how wealth is kept and passed through families for generations, making this type of life insurance an excellent resource for keeping your family’s assets and wealth safe.

At Paradigm Life we can customize a policy to fit your financial situation. Our expert Wealth Strategists are available to answer your questions and show you customized illustrations, outlining an individual plan of action to help you achieve your goals. Request a free virtual consultation, no strings attached.

Watch: Getting Ready to Retire at Any Age

Read: Know Your Retirement

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