There are many reasons why life It’s not always easy to save enough money to cover your retirement needs or the needs of your dependents once you’re gone. Having to retire early or suffering through poor investments can hinder savings efforts. That’s why life insurance can be a good investment — even after you retire.
Term life insurance can be a good fit if you think your children will be on their own, your house will be paid off, and you have enough money to provide for your loved ones. However, that scenario doesn’t apply to everyone. Some people may need permanent life insurance. There are many reasons you might need permanent life insurance during retirement. A permanent life insurance policy provides coverage for as long as you pay the premiums. It also has a benefit that term insurance does not — the capability to accumulate cash value on a tax-deferred basis.
Cash values can be used for any purpose. Unlike loans from most financial institutions, you do not have to pass a credit check or other restrictions to use the money. If you don’t repay it, your beneficiaries will receive a reduced death benefit. If you must stop paying premiums, you can use the cash value to continue your insurance protection with a lower death benefit.