During Life Insurance Awareness Month this September, many insurance companies are reminding consumers of all the possibilities that permanent life insurance offers and that life insurance should be the first and center part of a sound financial plan. The latest to do so is The Penn Mutual Life Insurance Companies, which is encouraging all Americans to learn about the dynamic and multi-purpose ways that permanent life insurance can be used.
While 50 percent of U.S. households say they want more life insurance, 30 percent of them still have no life insurance policy. To help make consumers aware of all that life insurance has to offer, Penn Mutual shared these four ways permanent life insurance can be used:
- Permanent life insurance offers more than a death benefit. Along with death benefit protection, life insurance builds cash value, which can be accessed through loans or withdrawals for emergencies, college funding, retirement, and more.
- Permanent life insurance delivers protection that the policy holder owns, rather than rent. Unlike term insurance, permanent life insurance allows consumers to achieve peace of mind through death benefit protection. And throughout their lives, they can take advantage of the possibilities that the policy’s cash value can offer.
- Permanent life insurance provides a head start if purchased early in life. The sooner consumers start, the more impact permanent life insurance can have on their financial future. Also, when they are young and healthy, they can lock in better rates and have more time to build cash value.
- Permanent life insurance grows with the policyholders if they revisit it regularly. As life evolves, so do the policyholder’s personal and family’s financial needs. Meeting with their financial professionals regularly to revisit the policy will help ensure that it grows with them while they make any necessary adjustments.
Note: Accessing life insurance policy cash values through loans and withdrawals will reduce the stated cash value and death benefit amounts, and may result in surrender fees and other charges. Because individual circumstances may vary, it is important to seek the assistance of a qualified advisor to assess the appropriateness of any referenced financial strategies. Not a guarantee of future performance or success. (Visit Penn Mutual at http://www.pennmutual.com.)
By Ayo Mseka