Why You Need Life Insurance If Your Kids Have Graduated

Are you one of those people who thinks life insurance is only to provide enough money to pay off the mortgage and your children’s education should you die young? Do you know how much college will cost by the time your children are ready for it?

1. Life insurance is a tool that can be used during life as well as at the end of life.

2. Permanent life insurance has a hidden treasure called cash value. This is a “forced” savings feature inside the premium.

3. If you pay the guideline premium instead of the minimum premium, the cash value accumulates and grows. Universal life and variable universal life insurance have this feature.

4. You can use the cash value to pay for things during your life: college, purchase of a home, retirement, anything!

5. The bigger the death benefit the bigger the cash value. Not only are you leaving money at your death, you have also created a savings pool.

More About Why You Need Life Insurance

Yes, there is a hidden value to your life insurance.

· Don’t take out all the cash value because you risk creating a taxable event.

· Don’t use the cash value like your checking account.

If you currently have term insurance, talk with your insurance agent or financial advisor about converting some or all your term insurance to permanent insurance or adding permanent insurance to your financial plan.

· Review how the policy works

· Make sure the premium fits your budget