Protecting your family with life insurance is more than providing financial support for your loved ones when you pass away. Providing for your family with life insurance actually offers financial support while you’re still alive, as well as when you pass.
When an individual determines that they would like to provide more for their family than just the day to day necessities, the idea of having enough money can be overwhelming. As children grow up, most parents look to provide more than just the necessities of life.
For instance, a child might want to study abroad, attend the college of their choice, or maybe even start their own small business. Whatever desires a child might have to progress their knowledge and talents, parents typically want to help them along the way.
Permanent Whole Life Insurance can provide parents with the opportunity to help their children achieve their goals and dreams.
Whole Life Insurance is an asset. When you build cash value inside a properly structured whole life policy, not only are you saving for your future (retirement and kids needs’), but you are giving your money opportunity in the present.
Money sitting inside a whole life policy earns an interest rate; meanwhile an individual can simultaneously access the cash value in the form of a policy loan to use for anything of their choice.
For example, many parents use the cash value of their whole life policy to pay for their children’s college tuition. By using a cash value life insurance policy to pay for college, the individual who owns the policy is privately funding the expense. That means if you were the parent utilizing this strategy for your child, you would be safely financing tuition while also earning a rate of return.
Money Management Skills
Some parents, to further educate their children on proper money management, set up a repayment plan for their son or daughter. Unlike traditional lenders who determine the borrowing and repayment terms of school loans, life insurance companies never do that.
However, if you as the parent and policy owner want your children to be responsible for any money they borrow against your policy for college or something else, you can set up the payback on your terms – designating the amount, the time-frame, etc.
Benefits of Whole Life Insurance
The flexibility and safety that comes with owning a cash value life insurance policy is what makes the financial vehicle not only attractive, but valuable. With life insurance you are helping to provide for your family’s lifetime of opportunities, as well as ensuring their financial protection when you pass away.
Read: A Cash Flow Resource
Watch: How to safely Fund Your Kid’s College
Listen: The Benefits of Cash Value