10 Unknown Benefits of Having a Life Insurance Policy

Life insurance is an undeniable financial support for anyone. One who wants to build a secure future should definitely be aware of its importance. This small investment towards the forthcoming crunches of life can protect your dependents from the burden of payment of funeral costs, mortgage balances and many other expenses. Obtaining life insurance through our agency in Rochester, NY is an easy step to protect your heirs from any debt you may have. Life insurance Rochester, NY is straightforward financial help for your beneficiary, no matter when the policyholder dies.

Life insurance comes in many forms, and our agency will educate you on the difference in benefits, liquidity of cash values and costs of the many types of life policies available.

A long list of easy-to-buy insurance policies are offered by insurance companies. Life Insurance quotes in Rochester, NY is offered by multiple carriers for all types of life insurances like term life insurance (Pure life insurance coverage for a certain limited period), Whole life insurance (Lifelong coverage by investing in a simple policy cash value through level cost premium payments), and universal life insurance (where excess of premium payments above the current pure cost of insurance is credited to the cash value of the policy; the cost of the pure insurance benefit will increase with age).

With an understanding of the different types of life insurance benefits and costs, it is clear that an insurance policy can fulfill life’s expectations in a tailored way to suit your needs.

Let's examine some of the benefits of having life insurance in Rochester, NY.

1. Provide financial support for your heirs –Insurance policies are meant to protect your loved ones from outstanding debts at death. Perhaps you are the primary breadwinner of your family or a single parent; an insurance policy can provide the financial support your heirs will need after your death.

2. Get funds if you have a chronic illness – Some insurance policies aren’t only designed to provide a death-benefit, some are structured so that you can take advantage of your cash value during illness when you might have high medical expenses or lost salary. If you become ill and not able to perform normal activities of daily living then you can request access to your insurance benefit or cash value before death with some types of insurance policies.

3. Funds for Business set-up – Starting a business is a tough task. The hard fact is - banks don't lend money to businesses without revenue. But, one of the most overlooked funding sources is the cash value of a life insurance policy. If your life insurance policy provides a cash value, you may be able to take a distribution or loan to fund your startup business.

4. Funding a charity - There is nothing more rewarding than donating your money to charity. At your death, you can name an organization of your choice as the beneficiary of your life policy. You can also set up a charitable trust in the event you have significant assets and/or life insurance benefits to be distributed in the future.

5. Ride out the stock market –Life insurance can work as a safeguard against a fluctuating stock market. Having a life insurance policy is a safeguard in the event of an unforeseen death as it can balance any market losses in times of a down trending stock market when your family will be in need of extra funds.

6. Protect your children – Parents can purchase an insurance policy for their children, or they can add a rider to their own plan. Buying an insurance plan rider can ensure safety for your family.

7. Providing financial support for college tuition – Your whole life insurance policy cash value can be used for tuition fees. If your policy accumulates a cash value, then you can borrow against the cash value and use it to pay for college or secondary education at a low interest rate. This may be a better option than paying a higher interest that is normally associated with student loans.

8. Getting funds after retirement – With some life insurance programs, a retiree can sometimes take a tax-free loan or withdrawal from an insurance policy. They can use the life insurance cash value to fund their own personal pension payments.

9. Waiver of Premium Rider – An insurance policy with this rider, waives the policyholder obligations to pay any further premium, if he or she becomes seriously ill or disabled. It provides temporary or permanent protection from paying future premiums, until the policyholder is able to return to work or resume normal activities.

10. Repayment of insurance premiums– With a return of premium rider, an insurance company could return your policy premiums if you are alive at the completion of the maturity period. If this rider is available, you, of course, would have to pay an extra amount for the cost of the rider throughout the policy duration.

Many of the above mentioned points are available with many life insurance policies in Rochester, NY. These are just some of the more common benefits that an insured can take advantage of with his/her policy. Talk to your financial or professional advisors to gain the maximum knowledge about the benefits of your life insurance policy.

Getting Life Insurance is a safeguard approach against life’s events. If you invest now, you will reap benefits in the future!