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Five Surprising Benefits of Having Life Insurance

July 18, 2024
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You know life insurance is a valuable asset to have in the event of your death, but did you know all the ways that life insurance can be valuable while you are living?

Here are some extra benefits to keep in mind.

1. Get Help Buying a Home

If you’re looking to purchase a new home, you’ll also need a solid down payment.

You can use a loan or cash from your life insurance policy to help cover the down payment on a new home.

Figure out your loan options and how much you need for your down payment before you make a withdrawal.

The cash value of your life insurance can also be used for emergency home repairs or to take care of other issues that may arise within your home, so having a good policy makes sense.

2. Make the Most of Your Retirement

Even if you’ve already started saving for retirement, life insurance can provide an added financial cushion.

As you get closer to your retirement, it could make sense to use the cash value of your life insurance policy to cover extra expenses, such as retirement living or medical bills.

Doing so may be a better option than spending down your actual retirement or investment accounts.

Make sure you understand all the stipulations around withdrawals listed in your policy before you use it to cover your retirement expenses.

3. Always Have the Care You Need

Having health insurance is a good way to make sure you get the medical care you need as you age.

But many health plans don’t cover the costs of long-term care or will only cover a fraction of these expenses.

If you need a nursing home or some other form of long-term care at some point in your life, you can use your life insurance policy to help pay for nursing home expenses.

Like any withdrawal, using your policy to cover nursing home care will reduce the amount of your death benefit, so keep this in mind when cashing out your insurance.

4. Peace of Mind for Yourself

You have enough stress in your life without thinking about the end of your life.

Life insurance can give you peace of mind to know that your funeral expenses will be covered without burdening loved ones.

While thinking about death isn’t pleasant, looking into a life insurance policy is a smart way to get this thought process started.

As you look over various options available, consider updating your will and burial wishes. Having even the smallest details in writing will make grieving a bit easier for those who are left behind.

5. Take Stress Off of Loved Ones

The main point of life insurance is to cover final expenses in the event of your death, but life insurance can also help relieve stress on your loved ones in other ways.

If you have enough of a death benefit, you can make sure needed expenses, such as housing, food and utilities are covered even if you are no longer around.

Depending on your coverage, you may even be able to ensure that your children can attend college or are at least financially comfortable if you were to pass away.

Final Thoughts

In life and death, having life insurance coverage is a smart financial move.

A good policy will provide a financial cushion for you while you are still alive, and a little stability for your loved ones when you pass away.

The experienced team at UROne Benefits™ can evaluate your current coverage and help you find the right plan for your needs and your wallet. Contact us here or at 800-722-7331.

This post was originally published in Aug. 2018; updated July 2024.