Being one of the oldest financial products on the market, Permanent Life Insurance naturally comes with many levels of protection and guarantees. Though each state has different exemption laws, typically cash value insurance is one of the few assets protected from creditors, divorce settlements, lawsuits and even bankruptcy.
It’s wise for anyone to have an asset protection plan in place before anything troublesome may occur. However, if you don’t have an asset protection plan and you do find yourself in a defensive legal situation, your whole life insurance policy is most likely protected.
Permanent Life Insurance Creates Safety
Traditional whole life insurance creates financial safety for an owner in a number of ways. Not only are you guaranteed a death benefit, but with properly structured permanent life insurance you are building a cash value that can be accessed with many tax benefits, if not be entirely tax-free.
Your whole life policy is also protected from the index market, allowing for you to never experience the stress of volatility or market downturns. Traditional Whole Life Policies also earn a steady rate of return, which make their consistent year after year return outweigh many any other investment accounts.
Permanent Life Insures Provides Liquidity
Permanent Life Insurance, also referred to as Cash Value Insurance, provides the liquidity needed to invest in other performing assets. One excellent feature of cash value is that you are in control of when and how you want to use your policy’s liquidity.
Because Permanent Life Insurance provides this savings and maximization component for an individual, it would seem likely that – in the event of a financial catastrophe – creditors would try to collect from the cash value to settle a debt. As with most legal matters, even matters that extend beyond insurance, each situation and state law can vary. However, typically the cash value is also considered exempt.
Making the Right Moves to Protect Your Life Insurance
As with any asset, it is important to think ahead in case of a disaster. The best way to protect your assets, Life Insurance included, is to consult an asset protection attorney. Contacting an individual in your state who knows the precise laws, can help you create a plan that will protect you.
Read – Banking on Long Term Success
Watch – How to Protect Your Policy
Listen – Leave Your Legacy