Ways Your Policy Can Work for You

Life insurance has other functions than merely as a reimbursement to your family at the time of your death. In some instances, you can use the money before you die. In other instances, you can name beneficiaries other than family members.

Basically you have more options to utilize your policy than you ever have in the past.


This section:

  • Describes three designees of your life insurance proceeds

  • Lists new ways life insurance can work for you

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Benefiting your family

Life insurance was originally designed to provide families with financial security in the event of a spouse or parent dying. Although life insurance has expanded to include many other benefits besides this, this initial purpose remains. Your life insurance policy should cover the your family's two biggest expenses:

            • mortgage
            • education

Including the cost of your entire mortgage is crucial for your family's financial security. Funding your child's education is a costly endeavor but you life insurance can easily cover the expense.

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If you have financial commitments, or a family that needs your income, a life insurance policy is highly recommended. Get a free quote from Efinancial, and find out how little your coverage could cost you.

Using the money yourself

Using your life insurance policy for your own benefit is a new insurance development. By using your policy as collateral for a loan, you can access additional funds. This is an especially attractive option when you no longer have a need for coverage but your policy is still in force. You can take out a loan while you are still alive to supplement your retirement, take a vacation, or pay unexpected bills.

Designating your life insurance proceeds as money to settle your estate is a convenient use also available now. Although the settling of your estate always happens after you die, you can plan for it while you are alive. Use your policy as a tool to retain your valuable property from having to be sold in order to pay taxes.

Giving the money to others

Making the beneficiary of your life insurance policy someone other than family is also an option. You can take full advantage of this by naming a charitable organization the beneficiary of your policy. Upon your death, the organization will receive a lump sum of money from you.

If you own your own business, you can name the company as a beneficiary. The proceeds can pay off debts and loans, be invested and used at a later time, or financially secure your business.


Next: Protecting your mortgage with life insurance

Learn even more:

Getting the lowest possible premium on your life insurance is almost like an art form. There are many variables to consider, and to get the right balance of term length, benefit amounts, and policy riders and illustrations, you need to take a careful step-by-step approach to the buying process.

Our free life insurance course is designed to help you do just that.

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