The Living Benefits and Financial Flexibility of Life Insurance

Life Insurance

One type of life insurance, cash value or permanent life, can provide guaranteed funds in case of financial emergency. It can supplement retirement income, or provide money for other purposes while the insured is living (also known as living benefits). A policy can be used just once, when the insured dies and the death benefit is paid to the beneficiaries, but it can be used many times during the insured's life.

People who own life insurance can turn to the cash value of a policy when all else fails and they are faced with a financial emergency. They know that the funds are there to borrow or withdraw, normally without delay or qualification, unlike a bank. This gives the insured product flexibility.

One of the best quotes I have found that describes the greatest benefit of life insurance, comes from one of the most successful Life Insurance Advisors in history:

“And isn't it the same with everyone? We all must die someday. Never at the right time. Always at the wrong time. We never have quite enough time to complete our plan, make our dreams come true—and that's why it's always the wrong time. Who'll give us more time? Only The Man upstairs. But we can give our clients the equivalent of time in the sense that we can give them the money to complete their plans. You know, we sell contracts for time and money. We can't guarantee the time—but we can guarantee the money." [1]

No other financial institution can offer what life insurance companies do. No other industry backs its products with reserves as sound as those found in the life insurance industry. In fact, during the Great Depression (October 1929-December 1941), when the stock market hit bottom and many banks went out of business, insurance companies provided security for their policy owners that was unavailable anywhere else. While well-established companies in other industries went bankrupt, fortunes were lost overnight, and income from real estate and other property evaporated, the failure of life insurance companies was unknown. In no case was there any loss to a continuing policy owner!

About the author: Kyle McDonald holds FIC, FICF, FSCP® & CLTC designations. His viewpoint on life insurance is simple, “Anyone with a family must have life insurance. In the end, life insurance is for others you care about, not you.” He is ready to help you and your family get the best option available. Contact Kyle today at   1-800-651-1953 or

[1] Ben Feldman, Creative Selling for the 1990s, Longman Financial Services Publishing,1989.