Permanent Life Insurance – What can A Permanent Life Insurance Policy with Cash Value be used for?
We talked about cash value in the last post, so if you want, please check it out here.
Now, we’re going to talk about what it can be used for. Stick around, you’ll learn something that will blow you away.
With cash value, you can do several things:
- You can use it to buy a car, a vacation, etc.
- Or “FLIP THE SWITCH” at 65 or 70.
- That means, you start taking out tax-free income for retirement as long as the policy value is sufficient.
Permanent Life Insurance Advantages
Here are some of the advantages of permanent life insurance:
- You get Tax Free Growth
- There is Zero Market Risk
- Creditor Free
- Tax-Free Income
Permanent Life Insurance Policy – Long Term Care Medicare
Here are some things that long-term care covers that Medicare does not:
Long-term Care covers:
- Cases when you need help doing basic things (i.e. dressing, eating, pooping)
MEDICARE COVERS NONE OF THAT.
Medicare will cover the total cost of skilled nursing care for the first 20 days, after which you’ll pay $170.50 coinsurance per day (in 2019). After 100 days, Medicare WILL STOP PAYING.
Check out this link: https://www.webmd.com/health-insurance/medicare-and-long-term-care
Some people think that Medicare will cover long-term care, such as nursing homes. That’s when they get SCREWED, because Medicare won’t cover much – the government does not have that kind of money.
You really need to plan for yourself or your relative for long-term care.
But here’s what you need to know:
Skilled nursing care is exactly like I said above.
Home health care. “If you’re homebound by an illness or injury, and your doctor says you need short-term skilled care, Medicare will pay for nurses and therapists to provide services in your home. This is not round-the-clock care. Generally, it’s for no more than 28 hours per week. With your doctor’s recommendation, you may qualify for more.” – source WebMd.
So, if Medicare doesn’t cover long-term care, what do you do?
Options are, unfortunately, limited:
- Rely on savings or loan. Personally, I think that’s crazy don’t do that. You’ll run out of money. You’ll break the bank before you get better.
- Buy long-term care insurance, WHICH IS INCLUDED WITH PERMANENT LIFE INSURANCE.
REMEMBER: PREMIUMS FOR PERMANENT LIFE INSURANCE GETS MORE EXPENSIVE THE LONGER YOU WAIT, AND THE MORE YOU AGE, THE BEST TIME TO GET IT IS NOW!
Permanent Life Insurance Policy – Critical Illness and Chronic Illness
On top of long-term care, there are two other benefits that can be added to perm life insurance.
- CRITICAL ILLNESS (i.e. heart attack, stroke, cancer, ALS)
- CHRONIC ILLNESS (i.e. Alzheimer, Arthritis)
Both will let the insured access a portion of their death benefit. Isn’t that great?
Financial Education Course – Step #3
We are FINALLY on the third step. That took us forever, but I hope you got a lot of value from our last couple of posts so far.
Let’s get started.
We talked about this a lot already, but let’s redefine emergency fund just to remind us of what it is.
Emeregency fund definition: It’s your stash for unforeseen circumstances.
Like when you get laid off OR Coronavirus happens and shuts down the economy.
At times like these, that’s when an emergency fund is useful because it will give you breathing room. It’ll allow you to not feel super stressed out and feeling like you’re being squeezed.
Conclusion: What can A Permanent Life Insurance Policy with Cash Value be used for?
So you learned quite a bit from today’s post. Let’s recap what you learned.
Perm Life Insurance has cash value and that allows you to:
- FLIP THE SWITCH, or withdraw from your cash value account tax-free as long as the amount is sufficient
Perm Life Insurance also offers:
- Tax free growth
- Zero market risk
- Creditor Free
- Tax Free Income
- Long term Care
- Critical Illnesses
- Chronic Illnesses
Long-term Care will cover skilled nursing care and home health care for the long term! Medicare DOES NOT!
If you skipped to the conclusion, that’s what you missed, I encourage you to go back and read the entire post; this one is ONE YOU SHOULDN’T SKIP.
Other than that, get our FREE eBook Leverage, that goes through all this stuff in detail AND MORE. Find it here at bit.ly/leverage-ebook.
Alright, that’s all for today, see you next time!
Continue sharing your way to success,