Cash value loans, collateral, critical illness and LTC riders — how the right life policy works for you while you're alive.
Most people file life insurance under "things that matter after I'm gone." But permanent policies with cash value — and modern riders — can matter a great deal while you're very much alive. Here's the plain-English tour of living benefits.
Cash value: money you can reach
Part of each premium in a permanent policy builds cash value that grows over time, tax-deferred. You can generally borrow against it — often without credit checks or bank approvals, because you're borrowing against your own policy. (Loans accrue interest and reduce the death benefit and cash value until repaid.)
Collateral a lender will accept
Banks routinely accept life insurance as loan collateral through a collateral assignment — and SBA loans frequently require life insurance on the owner.
Protection while you're sick, not just after
- Critical illness riders can pay a benefit on diagnosis of conditions like heart attack, stroke, or cancer.
- Chronic illness / long-term care riders can accelerate part of your death benefit to help pay for care if you can't perform daily activities. (Rider availability, triggers, and costs vary by policy.)
A quiet retirement supplement
Later in life, cash value can supplement retirement income through withdrawals or loans, structured carefully to manage the tax picture.
The honest fine print
Living benefits are features, not magic. They vary widely by policy, they have costs, and using them affects what your beneficiaries receive. 713-498-6800 — I'll show you how each one actually works.