5 Ways to Use the Living Benefits of Permanent Life Insurance

It is the nature of life that we never know what the future may bring. But, in a world filled with uncertainty, it is reassuring to know that our families will be financially secure if something happened to us. That is what we hear from policyowners who have chosen permanent life insurance, especially if they have first-hand experience in what protection and cash value can mean when they need it most.

Living Benefits and Multiple Options(1)

One of the goals of any financial security plan is to protect against life's uncertainties, and life insurance is often the first item on the list for taking care of family members. Starting a policy early protects your insurability for the future and helps make the insurance more affordable. Permanent life insurance combines protection for your family with cash value that builds over time. Once it accumulates, the cash value becomes a "living benefit" that can be tapped to improve your life and meet your goals.

Here are some important ways you can use these living benefits:

Dealing with the Unexpected If you were to become disabled, would your company still put money in your 401k? With cash value to fall back on, you could supplement disability income and cover necessary expenses if you were ever faced with a life-changing accident or illness.

Educating Children

Permanent life insurance cash values may be used to help pay for college tuition and living expenses, and currently and currently most applications for student financial aid don 't consider this asset when determining eligibility for scholarships, grants or loans.

Generating Business Cash

When an opportunity arises or your business requires immediate funds, you can access life insurance cash value quickly without credit applications or lengthy approval processes.

Provide Funds for Emergencies

Whether it is an unexpected home repair or a family crisis, you may at times need additional dollars to address life 's challenges. Once your emergency fund is depleted, life insurance cash value can be tapped to pay for unexpected events, like a new roof or a family member 's medical expenses.

Supplement Retirement Income(2)

(1) The cash value of permanent life insurance can be a stable asset in your retirement portfolio, consistently and tax-deferred, over many years. There are multiple options for using your accumulated cash value to suit your individual needs at retirement and beyond.1
Cash values that accumulate in a whole life policy are through dividends paid to the policy. Dividends are not guaranteed. They are declared annually by Guardian’s Board of Directors.

(2) Cash values may be accessed tax free if the distribution is structured properly through loans and withdrawals. Policy benefits are reduced by an outstanding loan or loan interest and/or withdrawals. Dividends, if any, are affected by policy loans and loan interest. Withdrawals above the cost basis may result in taxable ordinary income. If the policy lapses, or is surrendered, any loans