Updated: Aug 22, 2020
People commonly think of a loved one receiving a sum of money after their passing when ruminating about life insurance. There is so much more, so many living benefits that are associated with life insurance. Whole life policies can offer a benefit that builds cash value within the policy. As you pay into the value of the policy your cash value builds up, sometimes even supplemented by policy dividends, giving you a benefit that you have access to. Say you purchase a whole life policy that gives you access to the cash value, you make this financially smart decision years before you are in poor health. So 20 years goes by and an emergency happens to your family, maybe a financial one, maybe your home is in jeopardy of being foreclosed (mortgage insurance) ,or you suffer an injury that takes you out of work for an extended period of time, or simply need to send a child to college. In this case you can tap into that cash value tax and penalty free, its your money. If you decide not to pay it back its simply deducted from the death benefit. So now you can say LIFE insurance, LIFE.