Life insurance has a reputation for providing money to the owner’s beneficiaries. That means the policy pays out when the person who owned the policy has died. However, life insurance can also benefit the policy owner while they’re still alive. At 925 Partners in Jacksonville, FL, we’re here to help you understand how life insurance can be used as a financial asset.

Understanding Permanent Life Insurance Policies

The types of insurance policies that function as a financial asset are known as permanent life insurance policies. They get this designation because you hold the policy throughout your life. That is, once you buy the policy, you pay toward it for as long as you’re alive. Policies known as whole life and universal life are permanent life insurance policies.

Using Your Life Insurance for Financial Support

Part of your monthly premium is set aside into an account known as a cash value account. As you make payments toward your policy, the balance grows. Some policies pay interest on the balance as well, which makes it grow faster. Once the account has reached a specific threshold, you can use the money for various purposes. They include:

Using the policy as loan collateral
Borrowing money from the fund
Cashing out the policy and redeeming the balance
Withdraw funds for keeping

Call Us To Find Out More About Getting a Life Insurance Policy

At 925 Partners in Jacksonville, FL, we’re here to explain how life insurance works and how to make it work for you. Call us and let us answer your questions about getting a whole or term life insurance policy. We’ll show you how this type of insurance can help you during your lifetime.