life insurance

4 Living Benefits of Life Insurance



CHICAGO, June 28, 2022 (GLOBE NEWSWIRE) — One advantage of getting a life insurance policy is the death benefit. This helps loved ones replace the policyholder’s income and pay off debts if the policyholder passes away during the policy term.

However, life insurance policies can also offer living benefits while the policy is in force. These benefits can help the policyholder make the most of their premium payments. This article will dive into how life insurance with living benefits can help policyholders while they are alive and the policy is still outstanding.

1. Cash value withdrawals

Cash value is a growth component of permanent life insurance policies. Part of each permanent policy premium goes into this component, which then grows tax-deferred at a certain rate depending on the permanent policy type.

Once the cash value grows large enough, policyholders may be able to withdraw funds from it for any use, such as emergencies, large purchases, or college tuition for their children. Keep in mind that proceeds above the policyholder’s basis, or the amount initially invested, may be taxable.

2. Taking out loans against the cash value

Policyholders can also borrow against their cash value when it grows large

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New VA Benefit Will Sell Guaranteed Life Insurance to Most Veterans

A new Department of Veterans Affairs life insurance policy for veterans of any level of disability rating is just six months away from launching.

In a blog post Monday, the VA reminded veterans it will begin offering Veterans Affairs Life Insurance, or VALife, on Jan. 1, 2023, in line with a law passed last year, with applications opening that day.

VALife will be open to all veterans 80 years old or younger who have a disability rating of 0 to 100. Older veterans will also be eligible if they applied for VA disability compensation before age 81 but did not receive the disability rating until after turning 81, and if they apply for the life insurance within two years of getting the rating.

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“The new program meets the needs of service-connected veterans who may not have previously qualified for life insurance with VA,” the blog post said.

VALife is what’s known as guaranteed acceptance whole life insurance. That means no medical exams or health questions are required to be approved, with the VA in its blog post saying the plan will have

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