Think back to the first time you heard the term “life insurance.” What came to mind? Death benefit? Funeral and burial expenses? If this was your initial impression, you’re not alone. However, you might be surprised to learn that a life insurance policy can be used for expenses unrelated to death. Specifically, a whole life insurance policy can offer payouts to help pay educational expenses or a home mortgage.
At 1891 Financial Life, our team can help you choose and tailor a life insurance policy that can support educational funding or mortgage relief.
Life insurance can be a vital part of planning for your children’s education expenses. It offers a practical way to plan ahead and make education more affordable, covering costs like tuition, books, and living expenses that can add up quickly.
Whole life insurance can be a particularly wise financial planning tool. The policy's cash-value component and tax-deferred growth let policyholders build cash value over time, which they can borrow against tax-free.
Mortgage payments can range from a few hundred dollars a month to several thousand, depending on numerous factors, including the price of the home, terms of the loan, and interest rates. If necessary, a life insurance policy can be used to help pay off a mortgage.
As the policyholder, you can use term life or permanent life insurance payouts to either cover monthly mortgage payments or pay off your home entirely. No matter the option you choose, your surviving family members will appreciate that added sense of security. They can find great comfort in knowing they won’t have to sell the home or scramble to come up with payments.
The best way to determine the amount of life insurance you’ll need involves gathering information and making all the necessary calculations — the remaining mortgage owed on your home, for example. Our team at 1891 Financial Life can closely review and assess your needs, and then suggest a recommended amount that will provide sufficient funding.
As you prepare to invest in a life insurance policy, we encourage you to consider either term life insurance or permanent life insurance. Both have their unique advantages, but one may be more suitable than the other based on the length of your mortgage, educational needs for beneficiaries, and other individual factors.
Using a life insurance policy to make mortgage payments or to fund education offers potential tax benefits, including tax-free death benefits for your beneficiaries.
At 1891 Financial Life, we remain dedicated to tailoring life insurance policies that fit into your broader financial plan. We’ll consider retirement savings, emergency funds, and other financial needs as we structure a life insurance policy that maximizes tax-advantaged benefits for mortgage relief and educational funding.
We’d be thrilled to meet with you to discuss the multifaceted utility of life insurance beyond just covering final expenses. Contact us today so we can introduce you to a variety of personalized policy options.
Our culture is about looking out — for you, for others, for family, for the community. That is how we go “Beyond Life Insurance.”
At 1891 Financial Life, we don’t just sell policies, we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs. In 2023, 1891 Financial Life was listed by Forbes as one of "The World's Best Life Insurance Companies."
Our portfolio is extensive, ranging from various life insurance policies to our annuities to support your financial needs no matter what stage of life you’re in.