The Ripple Effect: 7 Advantages of Life Insurance

It may seem small, but the impact is big.

advantages-of-life-insurance Johan Spjuth/EyeEm

Life insurance can give you peace of mind and help you protect what matters today and for generations to come. Consider these seven advantages of life insurance:

1. Protect your insurability

The best time to consider life insurance is when you’re young and likely to be in better health because you’ll be able to lock in the most competitive rates—protecting your insurability and putting a plan in place for your family’s future.

2. Continue to provide for family

A life insurance policy can help surviving relatives stay in the family home, continue an education or cover outstanding debts like student loans. Life insurance can also help replace household income from your spouse.

3. Prepare for unexpected health concerns

One of the advantages of life insurance: Some policies have an accelerated death benefit that allows you to take an advanced payment from your policy. This can help pay for your medical expenses when you are faced with a life-threatening illness, reducing hardship on you and your family at a difficult time.1

4. Provide added security for multiple family members

Your life insurance benefit doesn’t have to go to just one person. You can designate more than one beneficiary and decide how much of the benefit goes to a spouse and how much goes to children or grandchildren.

5. Provide added financial protection

The right kind of permanent policy can accumulate some cash value over time. The policy’s cash value can help supplement income, pay for college funding or be used as an emergency fund.

6. Leave a legacy to a cause you care about

In addition to caring for your loved ones, your life insurance payout can be used to leave a financial legacy that supports an alma mater, hospital, humane society, religious organization or other philanthropic causes.

7. Pay funeral expenses

A life insurance policy’s death benefit can play an important role in the handling of final expenses such as the cost of a funeral and burial.

1Receipt of these accelerated benefits may be taxable. Any accelerated death benefits paid will reduce the death benefit by the amount received. Assistance should be sought from a personal tax advisor. (Accelerated Benefits Model Regulation)

Life insurance death benefits are generally not subject to income taxes under current tax laws. Cash value distributions may be subject to income tax. Benefits may be reduced by any loans on the policy less debt.

Annuities are not short-term products. Withdrawals prior to 59½ may be subject to IRS penalties. AAA Life and its agents do not provide legal, tax or financial advice. Please consult your professional advisor prior to the purchase of any policy or contract. Life insurance underwritten and annuities offered by our affiliate, AAA Life Insurance Company, Livonia, MI. AAA Life is licensed in all states except NY. ALMI-25773-719-XX

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