I was standing on the soccer sidelines the other evening talking to my fellow soccer moms about how well a child we all knew was adjusting to the loss of her mother a year ago. It was a horrible conversation that made us all feel uncomfortable and incredibly sad. I hate being sad. I hate thinking about sad horrible things. I avoid them at all costs. I do.
So what I started thinking about was what makes me feel better. I wasn’t thinking that I might die one day, I was thinking about how much I love my family and how much I love my life insurance. That’s right – I love my life insurance and here are my top ten reasons why:
- The death benefit
- My family will be sad when I die but they won’t be broke.
- It helps me sleep better
- I sleep better knowing that there will be money for the house payment, soccer tuition, college, weddings, etc. Their lives will continue even if mine didn’t.
- The policy cash value grows tax-deferred, and loans can be taken free of tax.1
- If I’ve accumulated enough money in the policy (which I try to make sure I can do by paying more than the minimum premium), I can take a loan from the policy and use that to pay for things like college expenses or a new roof to replace the one I couldn’t be bothered to fix.
- Living Benefits2
- I bought a policy that offers accelerated benefit riders, so that I can get some of the death benefit while I’m alive if I experience an awful illness or injury (also something that makes me sad to think about, that my life insurance makes me feel better about).
- It sets a good example for my daughters
- I bought life insurance when I was a stay-at-home parent. It shows my daughters that my life has value no matter what type of “work” I do.
- Possible retirement supplement3
- If I don’t kick the bucket or get sick (fingers crossed), then I can use the cash value with those tax-free loans (or withdrawals) I mentioned for retirement. I don’t mind thinking about retirement at all!
- It makes my bottom line look stronger
- Life insurance cash value is a financial asset and it makes my financial picture brighter. Nothing wrong with a strong bottom line!
- I love a deal.4
- The only thing guaranteed in life is death and well you know. There is a 100% chance I am going to die and my policy gives back more than what I paid. Total deal.
- My Dad doesn’t have any
- Mom will have some hard choices to make if Dad dies first.
- I care
- I really love my family and would literally move heaven and earth to protect them. At the end of the day, a monthly premium payment is so much easier than moving heaven and earth.
1Policy loans and withdrawals reduce the policy’s cash value and death benefit and may result in a taxable event.
2Living benefits are provided by no additional premium Accelerated Benefit Riders. Payment of Accelerated Benefits will reduce the Cash Value and Death Benefit otherwise payable under the policy. Receipt of Accelerated Benefits may be a taxable event and may affect your eligibility for public assistance programs. Please consult your personal tax advisor to determine the tax status of any benefits paid under this rider and with social service agencies concerning how receipt of such a payment will affect you. Riders are supplemental benefits that can be added to a life insurance policy and are not suitable unless you also have a need for life insurance. Riders are optional, may require additional premium and may not be available in all states or on all products. This is not a solicitation of any specific insurance policy.
3The use of cash value life insurance to provide a tax-free resource for retirement assumes that there is first a need for the death benefit protection. Policy loans and withdrawals reduce the policy’s cash value and death benefit and may result in a taxable event, but substantial tax ramifications could result upon contract lapse or surrender. Surrender charges may reduce the policy’s cash value in early years. The use of one benefit may reduce or eliminate other policy and rider benefits.
4Life insurance guarantees are dependent upon the claims-paying ability of the issuing company.