The primary reason to own life insurance is for the death benefit protection. But if you look beyond the death benefit you will see there are many ways life insurance may strengthen your financial position. Permanent life insurance accumulates cash value and provides some tax advantages not found in other assets.

Why permanent life insurance for more than the death-benefit protection? Cash Value!

Flexible funds for retirement – You can use your permanent life insurance cash value to supplement your retirement income without some of the requirements and limitations that apply to 401(k) and IRA. You do so through loans and withdrawals from the policy.

College savings – Life insurance cash value is one of the few assets not currently considered in federal college financial aid calculations. Families with college-age children who have permanent life insurance policies may use the policy’s cash value (via policy loans and withdrawals) to pay college tuition and housing expenses.

Legacy funding – Life insurance is perfect for leaving a legacy in addition to providing for your spouse, family and other heirs.
Small-business succession – If you own a business, you may consider using a policy as part of a Buy-Sell Agreement to help ensure continuity of a small business or to liquidate your ownership stake upon your death.

Charitable giving – If you have a favorite charity or local cause, you can fund a legacy gift with a life insurance policy, naming the organization as beneficiary.

Tax benefits – Permanent life insurance offers many tax advantages, including tax-deferred growth on cash value, tax-favored access to cash value, and income tax-free distribution of death benefits. Life insurance is also used for estate planning to help cover estate taxes and ensure that the estate owner’s assets can be distributed to heirs and family members.


Cosmo Insurance Agency is knowledgeable in various options including but not limited to – term, ROP, permanent and whole - from over two dozen A rated carriers. We are familiar with the rate classifications that particular carriers use to determine the health class of enrollees – and there are significant differences between them. No matter what the results of your medical examination are, we will find the insurer that will provide you will the best rating class and thus the lowest premiums.




Posted 8:00 AM

Share |

No Comments

Post a Comment
Required (Not Displayed)

All comments are moderated and stripped of HTML.
Submission Validation
Change the CAPTCHA codeSpeak the CAPTCHA code
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015

View Mobile Version
© Copyright. All rights reserved.
Powered by Insurance Website Builder