Aflac: How Life Insurance Can Help You Build Wealth

NEW YORK, April 6, 2023 (Newswire.com) - Aflac: One of the key components to financial wellness is having a balanced financial portfolio, which should include life insurance. Life insurance coverage offers a death benefit that beneficiaries receive in the event of your passing, but it also offers other key benefits like wealth building. So, if you're looking to build wealth and provide financial security for loved ones, it may be time to get life insurance. Here's what you should know about how cash value works and how having a policy can help you achieve your financial goals. 

How the cash value of whole life insurance works

Whole life insurance is a policy that lasts from the point of purchase until the policyholder's death. As you make premium payments, the policy continues to grow cash value, which is a living benefit that can be accessed before the policy expires. While cash value can be used for anything, it is often used to cover major home repairs, medical expenses, or current needs like childcare and debt management. Because of the easy access to funds without having to borrow, a permanent life insurance policy can be key to building wealth. 

How to use your cash value

Because the cash value of life insurance can be used at the policyholder's discretion, there are a number of ways to use it. Here are just a few examples:

Pay premiums

One of the most beneficial uses for your policy's cash value is to use those funds to pay your premiums. By using the cash to cover the cost of life insurance, you free up funds for other important expenses like investments. 

Borrow money 

When an unexpected expense comes up, and you don't have the cash on hand to pay for it, the cash value of your life insurance policy can be just the remedy. You can take out a loan from your policy, and as long as you pay it back before your passing, no money will be deducted from the death benefit payout your beneficiaries receive.

Invest in your retirement 

Even if you already have a 401(k) or other retirement saving account, extra funds can never hurt. You can use the cash value of your insurance plan to invest back into retirement or simply use the extra cash later in life.  

How to decide if whole life insurance is right for you

Despite all the benefits associated with having a whole life insurance plan, it's not always the right choice for everyone. Here's how you can decide whether this policy is the right fit for your needs:  

Figure out your coverage needs

First, it's important to consider how long you'll need life insurance coverage for. If you want a guaranteed death benefit payout, then a whole life policy with lifelong coverage may make the most sense. But if you only have temporary coverage needs, then a term life policy that lasts for a specified time (such as 10, 20, or 30 years) may be better suited for your needs.

Consider the cost

One of the biggest deciding factors on whether life insurance is right for you simply comes down to what you can afford. Since a whole life insurance policy covers you for life, premium payments are typically more expensive than term life insurance premiums. And if you're older, you'll likely have to pay even more. So, decide whether whole life insurance is suited for your budget before getting a policy.

The bottom line

Life insurance is an excellent tool for building wealth. Not only can it protect your family in the event of your death, but whole life insurance policies also provide benefits for the living. By carefully considering companies and policies, you can choose an option that protects your and your family's livelihood. 

This is a brief product overview only. Coverage may not be available in all states including but not limited to ID, NJ, NM, NY, or VA. Benefits/premium rates may vary based on plan selected. Optional riders may be available at an additional cost. Policies and riders have limitations and exclusions that may affect benefits payable. For costs and complete details of the coverage, please contact your local Aflac agent. In Arkansas, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, and Virginia, Policies: ICC1368100, ICC1368200, ICC1368300, ICC1368400 and Riders: ICC1368050, ICC1368051, ICC1368052, ICC1368053, ICC1368054, ICC1368055.

Aflac insurance coverage is underwritten by Aflac. In New York, coverage underwritten by Aflac New York.

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Aflac New York | 22 Corporate Woods Boulevard, Suite 2 | Albany, NY 12211

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EXP 12/23

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Aflac Inc. is an American insurance company and is the largest provider of supplemental insurance in the United States. Aflac offers voluntary insurance or an optional layer of financial protection.

Source: Aflac