When life insurance comes to mind, most people think of the death benefit which is the amount of money paid out to your heirs and beneficiaries after you die. That is usually the reasons most people will purchase life insurance. Although this is the primary purpose there are few essentials one ought to know when dealing with life insurance.
Splits in Two Types
Life insurance policy is all divided into two parts: protection over a specified term and a lifelong protection policy. The former is paid month to month and the latter generally involves premiums and cash can be accumulated over the life time of the insured.
A Life Insurance Policy Can Fund a College Education
Over a course of time, a life insurance policy generally piles up to reach a large cash value. You can borrow against the cash value and use it to pay for college or other secondary education. And this is actually a very simple process. The paperwork required is minimal and you can basically just ask for the money and it’s yours.
Start a Business
Although most first year businesses fail, a life insurance policy can actually be leveraged to gain a credit line with the bank. This is often overlooked by many small business owners, but if Walt Disney can borrow money from his life insurance to construct Disney world, then you can make your wildest dreams come true too.