5 Things You Didn’t Know About Life Insurance

Most people know that a life insurance policy is an insurance contract between a purchaser and an insurance company where the company promises to pay a specified monetary benefit to the policy beneficiaries after the insured party dies, as long as no misrepresentations are made and the premiums are paid consistently. While that is the main reason most people purchase life insurance, it doesn’t mean your policy can’t be used as part of a sophisticated financial planning strategy.

While Term life insurance provides protection for a specified period of time and typically pays out only if the insured passes during that term, Permanent life insurance will provide lifelong protection as long as the premiums are paid, and generally gains cash value. Since the policy accumulates cash value it offers some important living benefits. Here are a few things you probably did not know you can do with your permanent life insurance: 

Start a Business

Banks typically won’t lend money you money to start a Richardson, TX business that isn’t bringing in revenue, meaning you’ll need to fund it yourself. You could tap into your savings or borrow from family and friends, but one often overlooked source of funding is your life insurance policy’s cash value.

Fund a College Education

Your life insurance policy accumulates cash value over time, which can be borrowed against to help finance a college or secondary education. No worries about financial aid forms or applying for bank loans – just ask for the money. Actually, you can use the cash value for anything you want, but Allegiance Insurance Agency recommends funding a college education as a use that will pay off in the long run.

Take Time Off to Care for a Parent

Unlike starting a business or sending your kid to college, it’s hard to control the timing of family emergencies, especially concerning elderly parents. By tapping into the accumulated cash value of your life insurance policy, you’ll be able to take time off or put your career on hold while caring for your family member.

Grow Your 401(k)

By tapping into your life insurance policy’s cash value, you can cover your first few years of retirement, leaving your 401(k) funds to grow longer. Additionally, the safety your life insurance policy provides allows you to take a more aggressive strategy in allocating your 401(k) investments.

Care for Yourself

In the event that you suffer from a chronic illness and remain too ill to perform two of six daily living activities, your permanent life insurance policy may allow you to have early access to your death benefit, effectively using money from it while you are alive. Your beneficiary would receive any remaining benefits when you die.

Allegiance Insurance Agency, your Richardson, TX insurance expert, can help you design a life insurance policy that meets your needs, whether a simple death benefit or a sophisticated financial planning tool. Call us today for information about your life insurance options.

Classic Car Insurance Tips and Tricks

Classic cars, unlike modern cars, qualify for less expensive insurance.  This is because classic cars are driven less frequently. Classic cars have limited liability exposure and most owners treat the cars well.  Allegiance Insurance Agency in Richardson, TX, has attractive policies you can peruse.

Ask about the necessary driving experience. Some insurance companies cover classic cars only if the driver has more than five years driving experience. Replacing faulty parts can be troublesome hence delays the car repairs and can add costs. The insurance companies offer part location services. Find out from the company whether they offer assistance or pay for the process. 

Insurance policies cover the actual value of the classic car. If the value depreciates, the owner pays the deductible. Other policies can pay the value coming from other sources and can be lower than the real value of the classic car. This leaves you with less money in case of loss or damage. Get an appraisal before shopping for an insurance company. This enables you to know the right value of the car. 

Ask for policy cover appreciation. Unlike modern cars which depreciate in value, classic cars appreciate in value yearly.  Look for the appreciation clause and review the contract annually. Appraise your car every 2-3 years to ensure the insurance policy only covers the current value. 

Check if the insurance company covers classic cars even in the restoration process. Some insurers have policies that cover cars in the process of restoration. Some classic cars are not in showroom ready condition hence the need to protect your investment. 

Understand the fine print of the terms of the policy to know your responsibilities. This makes you meet all the set conditions as some products have a cap for the mileage you can drive the car annually. Some insurance companies have seasonal policies or cover vandalism in the garage or weather damage. 

State other cars you have and how frequently you use the cars. This lowers your premiums as it reduces risks on the classic car. Go for specialist insurers as they understand vintage cars better than mainstream insurers. Get in touch with  Allegiance Insurance Agency in Richardson, TX, for reliable and convenient classic car insurance.