Ashley Temer is a Financial Representative with Northwestern Mutual who helps professionals, families, and business owners plan for financial security. She’s here for your “Money Minute.”
Life insurance is one of the best assets to own to protect the people you love and be sure that they are taken care of. A unique benefit of permanent life insurance is cash value. As you pay premiums, the policy builds cash value and is guaranteed to increase and grows tax-deferred. Cash value provides flexibility that offers options of life changes. Some key benefits are:
- Access cash value for emergencies
- Help supplement education funding
- Supplement retirement income
- Funding a business opportunity
To access the cash value, you can use the policy as collateral for a bank loan, withdraw a portion, or surrender part of the policy. There are advantages and disadvantages to each method, as well as different tax consequences. So you should work with a professional. The flexible nature of permanent life insurance means you may purchase it for one reason today, but use it for an entirely different reason years from now. There are many options when it comes to life insurance.