Permanent Life Insurance Can Help in the Worst—and Best—of Times.

by Ted Donnelly

Most of us buy insurance—whether it is home, health, auto, or disability insurance—to protect our loved ones in case something unfortunate happens. And while people buy permanent life insurance for much the same reason, you may be surprised to learn that it can help during many happy occasions as well.

Enjoy financial protection…and more.While the primary purpose of life insurance is to replace some, if not all, of the income that would be lost if you were no longer around to provide for your family, there are other benefits as well. One of the most significant financial perks permanent life insurance offers is the ability to build cash value over time.

You can use some benefits during your lifetime.
Cash value is a potentially valuable resource that grows tax-deferred within your policy. As long as you continue to pay your premiums, the cash value will continue to grow. What’s more, you can borrow against the cash value[1] while you are still alive, which is why it is often referred to as a ‘living benefit.’

It can help you get ready for life’s important milestones.
As you might imagine, there are plenty of reasons why the cash value in your policy could come in handy. Many people use the money to help pay for a child’s education or wedding, put a down payment on a home, or to supplement their retirement nest egg if their need for death benefit protection goes down. Business owners also make good use of this benefit by drawing on it whenever they need additional capital or would like to expand their operation.

It will be there for you—or your loved ones.
With permanent life insurance, there are no restrictions on how you use the cash value. You can use it to cover unexpected emergencies—or to help prepare for some of life’s most joyous moments. Moreover, some permanent life insurance policies may be eligible for dividends,[2] which may be used to help pay premiums or purchase additional insurance. And because permanent life insurance offers a lifetime of protection, you can be sure this coverage will be there to help your loved ones today, tomorrow…or whenever the time comes.[3]

Edward F. Donnelly III “Ted” is a Financial Services Professional and Agent at New York Life Insurance Company and Registered Representative offering securities through NYLIFE Securities LLC (member FINRA/SPIC), a Licensed Insurance Agency.

[1] The cash value in a permanent life policy is accessed through policy loans, which accrue interest at the current rate and decrease the available death benefit and cash value.
[2] Dividends are based on the policy’s applicable dividend scale, which is neither guaranteed nor an estimate of future results.
[3] Provided all premiums are paid on a timely basis.

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