You may think that if you are single with no children and no spouse that life insurance is completely pointless and a waste of money every month. The fact is, even as a single person, life insurance can still hold a great benefit.
Life insurance rates are based on age and health at the time the policy is issued. It locks you in at the lowest rate possible for you, so the sooner you set one up the better it is for you in the long run.
Whole life policies, in particular, can be beneficial while the insured is still alive. While they do offer a death benefit as any other life insurance policy does, they also allow for guaranteed, tax-deferred growth. The face value and cash value are guaranteed to grow and never lose money. They can help to establish financial security over time.
Whole life policies can be used as a type of collateral to back up loans when needed. You can even borrow against it in times of need or emergency. Additionally, you can accrue dividends on your policy yearly based on the company’s performance. These can be substantial, especially compounded over time.
One of the most important benefits is that you can use your account as flexible funds for retirement. The permanent life insurance cash value to supplement your retirement income without the limitations that apply to other traditional accounts. You can receive dividends in cash and take out loans against your policy. You may also at any time terminate coverage and collect the cash surrender value as a paid out annuity.
Even the death benefit doesn’t have to go to the next of kin, or even a relative at all. You are free to will your funds to anyone you see fit – charitable funds, friends, companies, even set up trusts of scholarship funds in your name.
To learn more about life insurance and how it can benefit both you and your loved ones give Centennial Insurance Services a call today. 239-247-5125 or visit www.cisinslf.com