4 Ways Life Insurance Pays -- Even if You Don't Die

Posted by April Peveteaux
Got life insurance? You probably don't, if the reports from the Wall Street Journal are accurate. Another negative side effect of the unemployment rate, almost a third of Americans are without any kind of life insurance coverage. This is the highest rate in four decades, with 35 million households uninsured.

While cutting back is partially to blame, people who depended on their company to provide life insurance lost that benefit when they received their pink slip. Regardless, it's usually not on the top of the list when you find yourself unemployed. But it should be.

Life insurance may not be something you think about every day, but if you have kids, you have to prepare for the worst. Even if you don't have children, it's a good idea to have some kind of coverage.

Of course a benefit that kicks in after you die can be a hard sell when you're on the unemployment line, but there are ways to make that policy work for you even if you're still kicking.

1. Cash Money
Your life insurance can serve two purposes -- a death benefit and an investment. If you choose whole, universal, or some types of variable life insurance, you have the option to surrender your policy and receive the cash value. A portion of your premiums can be invested into a type of savings account (policy depending), and after interest accrues, it's all yours if you cash out your policy.

2. Loan Collateral
Again, if you purchase whole life insurance, your account can be seen as an investment, and therefore you can use it when you need to get a loan. Some policies allow you to borrow against the cash value of your life insurance, giving you more to work with when you're in a bind.

3. Annual Dividends
If you purchase a participating policy, you're entitled to company profits as if you were a shareholder in the organization. You can either get a cash payment ever year, reinvest in more insurance, or use the dividends to pay those monthly premiums.

4. Getting Rid of That Nagging Feeling
Maybe you had to brake suddenly and narrowly missed a collision on the freeway, or heard a devastating story about a colleague being diagnosed with a terminal disease. Those moments where mortality hits you in the face are panic-inducing, even more so if you go without life insurance. Get that monkey off your back and call an insurance agent today.

Do you have life insurance?

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