NAIC touts overlooked financial benefits of life insurance policies
Posted by | Posted in Insurance Help | Posted on 09-01-2012
The organization representing state insurance commissioners is promoting life insurance as an “overlooked” potential source of immediate funds.
Adam Hamm
“In tough economic times, people look everywhere — an IRA or 401(k), credit cards, even under their mattress — for emergency cash,” according to a National Association of Insurance Commissioners statement.
A recent NAIC survey found that 63% of consumers have life insurance, yet it is often forgotten as a source of revenue.
When thinking about everyday finances, life insurance is not top of mind for most Americans, said Adam Hamm, NAIC vice president and North Dakota insurance commissioner, in the statement. According to our survey, more than two-thirds of consumers dont know some types of life insurance include a cash value, and nearly half dont think of life insurance as an investment option.
People can take loans against policy values, or they can cash in a permanent life policy, which enables them to immediately obtain the full accumulated value of the policy, according to the NAIC.
For Americans worried about the recent stock market volatility, permanent life insurance may present a lower-stress way to put aside money for the future, according to the NAIC. The dollars that go into the investment channels of these policies (beyond the costs of the insurance) accumulate interest each year. And insurers typically guarantee a minimum return of at least t3% to 4% per year.
Almost half of respondents to the NAIC survey said low risk and tax-advantaged growth were priorities when investing in todays volatile market and both are features of some permanent life insurance policies. Additionally, 65% of the NAICs survey respondents did not know some types of life insurance include a dollar amount that is guaranteed to increase in value and may provide tax benefits.
Similar Posts:
- Whole Life Insurance for Avoiding Policy Lapses
- Life Cover: Necessary to have Peace of Mind
- Life Guarantee Protection
- Understanding Life Insurance for the Seniors
- Insurers Responsible for Lower Health Care Costs in Consumers’ Eyes
