Three Ways to Make the Most of Your Life Insurance

by SCarney on ‎02-08-2016 09:24 AM - last edited on ‎03-03-2016 01:45 PM by Lithium Technologies (4,044 Views)

 No matter how we’re spending our cash, we all want to get the most for our money. 

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Here are three ways life insurance can help make your money work smarter for you: 

Transferring Wealth

Consider getting a life insurance policy for yourself, naming your child or grandchild as beneficiary.And as soon as the policy is active, the death benefit is, too. For example, with a permanent policy, a 65-year-old woman can make an initial $50,000 payment that can create an immediate death benefit almost two-and-a-half times that amount. The life insurance policy could provide over $121,000 to leave a legacy of funds for those she cares about.2

 

Insuring a Child

Because premium rates are based primarily on age and health, buying life insurance for someone who is young and in good health allows you to lock in competitive premium rates. You could buy permanent life insurance for your child or grandchild and let the policy accumulate additional cash value over time. When the child reaches legal age, they have the option to become owner of the policy and can borrow against it and withdraw cash from the policy to help cover things like college or living expenses.3

 

Meeting a Financial Goal

A permanent life insurance policy that accumulates cash value can be set up so that it grows your money—with tax-deferred1 earnings and compounding interest year in and year out—to reach a chosen amount at a date in the future. You could use the funds to help supplement your retirement income and likely would not have to be 59-and-a-half years old to use the money.

 

Disclaimer/Legal Footnote:

1AAA Life and its agents do not provide legal, tax or financial advice. Please consult your professional advisor prior to the purchase of any policy.
2The amount shown is based on a standard non-nicotine classification and may be higher or lower depending on customer’s age, gender and personal health history. Assumes no loans, partial surrenders or withdrawals. Amount based on current interest rates. Rates subject to change without notice.

3Benefits may be reduced by any loans on the policy. Product and its features may not be available in all states. Life insurance underwritten and annuities offered by our affiliate, AAA Life Insurance Company, Livonia, MI. AAA Life is licensed in all states except NY. Policy form series ICC10-3601/UL-3601, ICC10-4601/UL-4601. ALMI-23169-D15-XX

Talk to Your Life Insurance Specialist or visit AAA.com/Life.

 

A version of this story appears in the March/April 2016 issue of AAA Living magazine.

 

Image credit/source: iStock

 

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