5 Signs A Single Pay Life Insurance Policy Is Right For You

There are several signs that a single pay life insurance policy is right for you. You pay a one time substantial payment to receive lifetime insurance and benefits for your survivors. The lump sum can cover insurance costs for life and funds the cash value of permanent insurance policies. Of course, there are several life insurance benefits offer employees. As someone looking for a life insurance policy, read below to discover if a single pay life insurance policy is right for you.

You Would Rather Pay Up-Front

One sign a single pay life insurance policy is right for you is if you would rather pay up-front. Pay all at once to avoid budgeting for premiums every month or year. Also known as permanent life insurance, you get a hands-free approach to handle the policy as you see fit. Additionally, eliminate the risk of losing coverage in the future due to not meeting premium payment requirements. This policy works best for those who have the capability and funds to pay a one time large premium. Of course, single pay life insurance may be right for you if you would rather pay up-front.

You Want To Receive Living Benefits

Another sign that a single pay life insurance policy is right for you is that you want to receive living benefits. This policy allows you to withdraw money for long-term care if needed. Of course, this amount is deducted from your death benefit available for your survivors. With this policy, you don’t have to spend extra money for your health treatment. The remaining funds will be given to your beneficiaries after you pass. If you want to receive living benefits, single pay life insurance may be the right path for you.

You’re Seeking Tax Free Accessibility

Of course, a single pay life insurance policy may be right for you if you’re seeking tax-free accessibility. Your financial investment grows on a tax-deferred basis. This means you don’t have to pay taxes unless you need to withdraw funds. Though, if you are at least 59 and a half years old, you won’t have a penalty for withdrawals. Additionally, this policy is great for those who need to leave a lot of money for beneficiaries, such as those with disabled children. Your survivors will receive benefits tax-free without a time delay or cost of probate. You can also build think tank business to maintain tax-free advantages.  If you are seeking tax-free accessibility, single pay life insurance policies may be for you.

You’re Looking For Investment Options

Certainly, another sign you should invest in a single pay life insurance policy is that you are looking for investment options. You can invest in single-premium whole life insurance. This policy pays a fixed rate based on the ongoing economic conditions and the company’s investment experience. Additionally, you can invest in single-premium variable life insurance. This policy allows owners to select from several professionally managed stocks, bonds and money market sub-accounts. Your choice should be based on your capability of understanding market changes and your portfolio. If you are looking for investment options, a single pay life insurance policy may be right for you.

You’re Replacing Your Existing Policy

Finally, you may need a single pay life insurance policy when replacing your existing policy. Fund a single pay life insurance policy through a tax-free exchange of the cash value from the existing policy. Additionally, make sure to pay attention to benefit comparisons and the projected waiting period. Of course, switching to a single pay policy works best for those who have been divorced, no longer want to pay premium payments or have children that no longer need support. Additionally, conduct periodic policy reviews important to determine its fit for your unique needs. If you are thinking about replacing your existing policy, discover if single pay life insurance is right for you.

There are several signs that a single pay life insurance policy is right for you. Invest in a single premium policy if you want to pay a one time lump sum. Additionally, if you want to receive living benefits this may be the right path for you. Of course, a single pay life insurance policy works best for those who want tax-free accessibility. Surely, invest in this policy if you are looking for investment options. Finally, a single pay life insurance policy may be right for you if you are replacing your existing policy. Read the points above to discover if a single pay life insurance policy is right for you.