There are lots of misconceptions about life insurance. Some people will tell you that life insurance is only for the rich. Some will even tell you that life insurance is too complicated for an ordinary person to understand. Well, that’s not entirely true. And in this post, we tell you about five things you didn’t know life insurance can do.
You can use your life insurance to pay part of your premiums.
This seems strange, right? But if you have a permanent life insurance policy like variable life insurance or whole life insurance, you can use money from your cash-value account to pay for your premium.
You can take a loan from your life insurance at an incredibly lower interest rate.
Permanent life insurance policies like a variable or whole life insurance policy allow you to take a loan from your life insurance at an interest rate, which is cheaper than what you will get in banks.
You can get coverage if you have any terminal illness.
On the contrary, there are many life insurance companies out there that will provide you coverage if you have any terminal or chronic illness.
You can decide where to invest a portion of your premiums.
If you own a variable life insurance policy, you can decide to invest a portion of your premiums in the financial markets or put it in a saving account.
You can donate your death benefits to charity.
Life insurance offers you the opportunity to help the poor and the needy when you are no more. It’s very easy. Just tell your insurer that you want your death benefits to be donated to charity and the procedure is a breeze.