What is the story about?
What's Happening?
Life insurance is often perceived as merely a death benefit, but it can offer significant financial advantages while the policyholder is alive. According to a survey by Corebridge Financial, 47% of Americans with life insurance feel confident that their dependents would manage financially without them, compared to 28% without insurance. Life insurance policies can provide tax-deferred growth, optional loans against cash value, and creditor protection. These benefits can supplement retirement income, offer tax advantages, and provide liquidity. Properly designed policies, such as whole life or indexed universal life, allow cash value to grow without annual taxes and offer flexibility in premium payments and death benefits.
Why It's Important?
The broader significance of life insurance extends beyond its traditional role, impacting personal financial management and retirement planning. By offering tax advantages and financial security, life insurance can be a versatile tool for individuals seeking to optimize their financial strategies. The ability to access cash value through loans without triggering taxes provides a unique financial flexibility. Additionally, the protection from creditors in many states adds a layer of security for policyholders. These features make life insurance an attractive option for those looking to enhance their financial resilience and planning.
AI Generated Content
Do you find this article useful?
