Often, we think of life insurance as a safety net; a means to protect those we love. While this is absolutely true, life insurance can also be a financial asset. Unlike other forms of insurance, life insurance provides protection for an event that is inevitable. As long as the policy is kept active during your lifetime, it will pay out at the time of your death. In addition to the death benefit, your life insurance can also serve as a financial asset.
Permanent, variable life and indexed life insurance policies build cash value over time. You have the option to access your cash value during your lifetime, the total of which is fully liquid. Meaning the cash value of these types of life insurance policies can be itemized in a balance sheet and easily compared to the other assets in your portfolio.
Convertible Term Life Insurance
Convertible term life insurance policies can also serve as a financial asset. Designed to give you the option to convert your coverage into a permanent policy later, convertible term life insurance policies are a great option for those interested in permanent coverage down the road. As long as you remain current on your premiums, these policies give you the option to convert your coverage into a permanent policy. Not only do these policies pay a death benefit if you pass away during your term, they provide the option to purchase permanent protection at favorable rates. Even if the insured doesn’t intend to convert the term life insurance policy, the conversion feature can come in handy if their health should decline in the future.
No Lapse Guarantee
Policies issued with a no lapse guarantee can also be a valuable asset. As the name suggests, these life insurance policies are guaranteed to have little to no cash surrender and will not be impacted by market performance or changes in policy charges or interest rates. The nature of these policies makes it possible to calculate the rate of return upon the premiums paid with a reasonable level of certainty.
If you’re seeking a life insurance policy that can also serve as a financial asset during your lifetime, we encourage you to request a quote today. Learn how affordable coverage and peace of mind can be!
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