3 Must-Know Facts About Life Insurance

3 Must-Know Facts About Life Insurance

life insuranceLife insurance is an excellent way to provide financial security for your loved ones after you pass away. While life insurance is a straight forward process, there are benefits of your policy you may not know about. Here is a look at three of them. 

  1. Cash value loans: This is where you can take a loan out of your life insurance policy to finance anything from medical bills to home improvements. What’s best about these is they are tax free, since the IRS doesn’t classify them as gains. However, you still have to pay these back, with the principal and interest going to your insurer. If you don’t pay this off and you pass away, your heirs will receive your life insurance benefits minus whatever you owe on the loan.
  2. Accelerated benefit rider: If you are diagnosed with a terminal illness, you can use part of your death benefits to pay for basic expenses. This is helpful in that you can pay off medical debts and make up some of the income you may miss from time away from work. Similar to unpaid cash value loans, the rider will decrease the amount your heirs receive upon your death.
  3. Death benefits can be probate-free: When you pass away, your estate will go to a probate court unless you have a trust set up. However, with life insurance benefits, there’s no need for your beneficiaries to go to court to receive these benefits unless the estate is the beneficiary. This makes it easier for your loved ones to receive your estate. 

To learn more about life insurance benefits, feel free to contact Connelly-Campion-Wright Insurance; we are a reputable New Jersey independent insurance agency that has been operating for over 85 years, providing exceptional services that will help you navigate all the complexities of insurance policies. 

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