Cornerstone Agency Services has merged with Union Bay Risk Advisors. Same exceptional service with a broader range of insurance choices!
Union Bay - Cornerstone Co-Branded Logo-fotor

Tips on How to Turn Your Life Insurance Payments Into Big Savings!

Life insurance is integral to financial planning, offering peace of mind by protecting your loved ones in case the unexpected happens. But did you know that your life insurance policy can also be a source of savings? With the right strategies, you can make the most of your life insurance payments and even turn them into significant savings over time. Here's how you can do it.

1. Choose the right type of policy

The first step to maximizing savings with life insurance is choosing the right type of policy. Term life insurance is usually more affordable and provides coverage for a specific period, making it a good option if you're looking to save on premiums. On the other hand, whole life insurance and other permanent policies come with higher premiums but offer savings components like cash value, which increases with time and can be withdrawn or used as collateral. Understanding your financial goals and choosing the right policy can help optimize your savings.

2. Start early to lock in lower rates

One of the best ways to save on life insurance is to start as early as possible. Premiums are typically lower when you're younger and healthier. By locking in a policy at a younger age, you can secure a lower rate for the duration of your policy, leading to significant savings over time. Additionally, starting early allows more time for any cash value components of your policy to grow, further increasing your savings potential.

3. Review and adjust your coverage as needed

Life changes and so do your insurance needs. Regularly reviewing your life insurance policy is important to ensure you're not paying for more coverage than you need. For instance, you may want to consider lowering your coverage if your children have achieved financial independence or if you have paid off your mortgage. This can help lower your premiums, giving you more money for savings or other investments.

4. Take advantage of policy dividends

If you have a participating whole life insurance policy, you may receive dividends from your insurer. These dividends can be used in several ways: you can take them as cash, use them to pay premiums or reinvest them into your policy to increase its cash value. Reinvesting dividends is a smart way to boost your policy's value and potentially increase the death benefit, all while keeping your premiums manageable.

5. Consider a convertible term policy

If you're starting with term life insurance but want to convert to a permanent policy later, consider a convertible term policy. This type of policy allows you to switch to a permanent policy without undergoing a medical exam, even if your health has declined. By converting at the right time, you can lock in savings with term premiums while eventually benefiting from the cash value accumulation of a permanent policy.

Life insurance isn't just about providing financial protection for your loved ones—it can also be a powerful savings tool. You can turn your life insurance payments into long-term savings by choosing the right policy, starting early and taking advantage of policy features like dividends and cash value. Regularly reviewing and adjusting your coverage ensures you're always getting the most out of your policy, allowing you to save more and secure a brighter financial future for yourself and your family.

Contact Us To Know More

Name(Required)
"By submitting my phone number, I hereby authorize Cornerstone Agency Services, LLC to communicate with me through text messaging."
Consent - Cornerstone Agency Services, LLC Privacy Statement:(Required)
This field is for validation purposes and should be left unchanged.

Renters Insurance: Essential for Roommates?

Living with roommates can be a fun and economical way to manage living expenses, however it's not just the rent and utility bills that should be split among roommates. Renters insurance, which is often overlooked, plays a vital role in protecting your personal belongings and covering liabilities that might not be the first thing on […]

Read More

Shocking Expenses of Pool Ownership!

Owning a swimming pool can be a fantasy. It's a perfect spot for family gatherings, a quick dip to cool off or to relax by the water. However, before you dive into the deep end, it's important to understand the hidden costs associated with pool ownership. These expenses extend beyond the initial installation and can […]

Read More

Secrets Realtors Don't Tell: How Your Home Choice Affects Insurance Rates!

When hunting for the perfect home, many buyers focus on location, architectural style and the number of bathrooms in the house. However, one critical factor often goes unnoticed until the closing process: how your choice of home affects your insurance rates. Most realtors may not highlight this but understanding this aspect can save you a […]

Read More
We extend coverage to individuals and businesses in 
Pennsylvania, New Jersey, and Florida.
Toll Free - (888) 499-2762

Direct to Branch Offices:
Lancaster, PA (717) 898-5982
Moorestown, NJ (856) 499-5191
Elkins Park, PA (215) 298-9398
Philly, PA (267) 678-1705
Tampa, FL (813) 330-5707
Mt Pleasant Mills, PA (570) 539–2758
Garnet Valley, PA (484) 301-3292
Altoona, PA (814) 979-1480
Ebensburg, PA (814) 615-7992
© 2024 Cornerstone Agency Services, LLC
Privacy Policy
Get Quality and Affordable Insurance
Get QuoteContact Us
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram