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Investing
February 21, 2022

Life Insurance with Living Benefits & How You Can Leverage the Cash

Post By:
Romi Wallach
In-House Contributor
Co-Founder
The Daily Drip
Guest Contributor:

If you are anything like me, you love killing two birds with one stone. I love a plan or strategy that can address and solve more than one scenario or provide more than one potential outcome.  I like plans that are fluid and adaptable.  I often think of my late father when I think of things like this since his favorite pants when I was a kid were ones that had lots of pockets, and could also become shorts by zipping off the bottoms.  Who doesn’t love 2 for 1? 

I take the same approach in my business. I have been working with families and business owners for years on their life insurance strategies and solutions.  That being said, there is far more than meets the eye when it comes to life insurance strategies. And my role is to ensure that my clients are fully-informed on all of the strategic options available so that they can make the best choices for their family and their business. 

Oftentimes, the differences between whole life cash value life insurance and term life insurance enters the conversation. Many view these options as an either-or, but both term and whole life can have a place in your insurance portfolio, depending on a variety of factors.  One is not better than the other, however, both do have advantages and disadvantages which your financial professional will review with you during the planning process.

Whole life cash value life insurance offers liquidity for family members when a loved one passes away, as well as for a business if a partner or key employee should pass away, preventing the need to liquidate other assets in order to address financial issues that may arise as it relates to the estate. This is a common expectation of life insurance, however another feature to whole life cash value life insurance is the liquidity it offers as a living benefit. That’s right- the cash value in this policy can be accessed and leveraged while the policy owner is living!

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There are many scenarios in which cash value life insurance can be utilized while the policy owner is alive, enhancing the person’s overall financial plan- including offsetting taxes.  Who doesn’t love tax break opportunities? Furthermore, cash value life insurance is a fixed asset that is not correlated to the market, which spares the owner the volatility of market conditions. From boosting your retirement income to consolidating debt, there are countless ways to harness the liquidity of life insurance. 

If you want to learn more about whole life cash value life insurance and the liquidity options available through life insurance, check out this informative article which may answer more of your questions.  If you’re interested in discussing this option as it relates to your personal circumstances, I’d love to chat and help you navigate your options!