With a spouse on board and a child on the way, now is a great time to think about securing whole Life Insurance in Austin TX. The particular type of insurance does more than provide a payout in the event the covered party passes away. Over time, the insurance policy will become quite an asset.
Here are a couple of examples of how this type of coverage can come in handy.
Building an Asset With Cash Value
One of the characteristics that makes whole Life Insurance in Austin TX different from term life is that the policy will build cash value over the years. This can come in handy once the policy is fully vested. At that point, it’s possible to borrow against that cash value and take care of some pressing bill. In some cases, being able to use this method to secure funds for an emergency is easier than trying to obtain a traditional bank loan.
Keep in mind that if the covered party passes away before the loan is settled in full, any remaining portion is deducted from the payout to the beneficiary. This is a good thing, since it ensures the debt does not have to be covered using other assets left behind by the deceased.
Opportunities to Fund the Policy Using Investments
There are different forms of whole life to consider. Some of them can be funded using investments. Depending on how the plan is structured, this can be an excellent way to provide for loved ones and ensure that they end up with less of a tax obligation. An insurance agent can go over the different forms of whole life plans and how they would achieve the goal that the client has in mind.
Today is an ideal time to learn more about life insurance and the security the right policy will provide. Contact Patrick Court and set a date and time to talk about the options. After going over the current financial situation of the client and discussing some goals, it will be easy to decide how to start off and what can be done to build on that start in the years to come.
