When people think about life insurance, they often think only of the death benefits associated with a policy. Providing a safety net to your loved ones is often the primary motivation behind getting a whole or term-life insurance policy. However, there are many other benefits to life insurance that people often do not know about. Most policies offer a number of advantages and only require a modest monthly payment. Let’s take a look at some of the benefits and important considerations of life insurance policies.
1. Funding College Expenses
As a whole life insurance policy continues to accumulate value, policy holders are eligible to borrow against that cash value to help pay for college or other education expenses. If you have young children, starting a whole policy within the next year provides plenty of time to accumulate value before they are college-age.
In fact, the borrowed money can serve any purpose, but paying for education is a relevant example because it is a common expense. With these loans, there is no need to apply to a bank or fill out financial aid forms. However, it is important to speak with a financial advisor before deciding to borrow large sums of money against your whole life policy.