Cashing Out Life Insurance While Still Alive

If you have a permanent life insurance policy that accumulates cash value, or you have a convertible term policy that you can turn into such, you can cash out while you are still alive. You have a number of different options available for cashing out your policy before you die. The option that is right for you will depend greatly on whether you wish to keep coverage as well as the amount you need to access. The knowledgeable agents at Bingham Insurance Group of Braselton, GA are happy to discuss the available options with you today.

Loan

In most cases, you will be allowed to take a loan from the cash value that has accumulated on your life insurance policy. Unlike other loans, this type of loan does not have a repayment schedule. With that being said, interest charges will accumulate and affect the death benefit directly. This means that any amount that is not repaid by the death of the policyholder will be deducted from the benefit amount.

Withdrawal

This is perhaps the best way to cash out a life insurance policy. It is easy to withdraw money from the cash value of the policy and you do not have to worry about any interest charges. Keep in mind, however, your policy premiums and your benefits can be affected.

Surrender

Essentially, surrendering your life insurance policy is canceling it altogether. When you cancel your life insurance policy, the entire cash value, less the processing fees, will be released. Before choosing this option, be absolutely certain that you no longer need coverage. It is important to note that you may be charged a penalty for cashing out early and you may be responsible for paying income tax on the payout.

If you have any questions about cashing out your life insurance policy while you are still alive, contact Bingham Insurance Group of Braselton, GA and a member of our team will be happy to assist you.

Commonly Asked Life Insurance Questions

At Bingham Insurance Group in Braselton, GA, we are constantly helping people get the right life insurance policy to help protect their loved ones and other financial interests. With this in mind, we are answering commonly asked questions about life insurance.

What are the different life insurance policies?

While different life insurance plans exist, they are mainly categorized into two: term life and whole life. Term life insurance covers you within a specific period. It could be 10, 15, 20, or 30 years. If you die when the policy is in effect, your beneficiaries receive a death benefit.

On the other hand, whole life insurance covers you as long as you live. You are expected to pay premiums when alive for your beneficiaries to receive a death benefit when you pass on.

When should I update my life insurance policy?

Just like most insurance policies, you should update your life insurance at least once a year. However, when you have changes in your beneficiary list or your financial situation changes, you should immediately talk with your insurance agent.

Do I need life insurance if single?

Life insurance isn’t just for married people and those with children. Single persons can benefit from life insurance, especially if they have debts, want to finance their funeral costs or have a business.

How does my insurance company determine my premiums?

While each insurer has its formula for determining your life insurance premiums, most consider factors like your age, health status, gender, and occupation to compute your premiums.

Where can I purchase a life insurance policy?

Life insurance is a must-have investment if you want to protect the things that matter most when you die. If you are in Braselton, GA and its environs, please get in touch with Bingham Insurance Group for an affordable life insurance quote.

Do I need to get a life insurance plan?

If you are in the Braselton, GA area, you should take the time to evaluate your personal needs when it comes to insurance. A form of insurance that a lot of people would benefit from getting is life insurance, which offers financial protection to those that you care about. There are a few reasons why people in this area of Georgia should invest in a life insurance plan. 

Protection for Dependents

The main reason that people will need to get life insurance is so they can get proper financial protection for their dependents. When you get a life insurance plan, you will have the ability to build it to have a term that covers your need and offers a certain financial insurance benefit if you were to pass away. This allows you to build a plan that can cover any end of life expenses and provide financial protection for those that you care about. 

Insurance Offers Investment Benefit

You may also want to get a life insurance plan if you are looking for an investment alternative. Those that invest in whole life insurance will see some of their monthly premiums go into an investment account that will slowly build in value. A whole life insurance plan can end up being a great conservative addition to any personal investment plan and offer financial benefits for years to come. 

Those that are looking for a life insurance plan in the Braselton, GA area should call the team with Bingham Insurance Group. There are a lot of important factors that need to be considered when you are shopping for life insurance. The team with Bingham Insurance Group can help you properly assess your needs and build a plan that gives you the right type and level of coverage. 

Life Insurance: Protection for Your Loved Ones

There are a lot of great ways to protect your loved ones, and one of the best ways is through life insurance. At Bingham Insurance Group, we can help you choose the policy that’s right for you. The level and type of coverage are important, and different kinds of life insurance can work for your needs. If you’re in the Braselton, GA area, we’re here to help you find a policy you and your family can feel good about. We’ll also be happy to answer your questions because we know choosing an insurance policy isn’t always easy without the right help and support. You want to make sure you’re getting what you want, along with the peace of mind.

Our trained and dedicated agents will walk you through the options you have, and ask questions to help determine what level of coverage could be right for you. Protecting your family in the event of your death is very important, and that’s especially true if you’re typically the one to support your family. You’ll also want to revisit your policy if your life circumstances change, such as if you get married or have a child. That can affect the coverage level you’ll want to have for your insurance, and we can help you make the needed changes, so your family stays protected. Changing jobs or careers is another good reason to talk to us. We’re happy to help.

Reach out to us today at Bingham Insurance Group so we can work with you on a life insurance policy that will keep your loved ones adequately protected. We want all of our Braselton, GA clients, and their families to feel good about the services we can offer. With the right policy, you can increase your peace of mind and the level of security you provide to your family, as well.

Life Insurance: Protection for Your Loved Ones

There are a lot of great ways to protect your loved ones, and one of the best ways is through life insurance. At Bingham Insurance Group, we can help you choose the policy that’s right for you. The level and type of coverage are important, and different kinds of life insurance can work for your needs. If you’re in the Braselton, GA area, we’re here to help you find a policy you and your family can feel good about. We’ll also be happy to answer your questions because we know choosing an insurance policy isn’t always easy without the right help and support. You want to make sure you’re getting what you want, along with the peace of mind.

Our trained and dedicated agents will walk you through the options you have, and ask questions to help determine what level of coverage could be right for you. Protecting your family in the event of your death is very important, and that’s especially true if you’re typically the one to support your family. You’ll also want to revisit your policy if your life circumstances change, such as if you get married or have a child. That can affect the coverage level you’ll want to have for your insurance, and we can help you make the needed changes, so your family stays protected. Changing jobs or careers is another good reason to talk to us. We’re happy to help.

Reach out to us today at Bingham Insurance Group so we can work with you on a life insurance policy that will keep your loved ones adequately protected. We want all of our Braselton, GA clients, and their families to feel good about the services we can offer. With the right policy, you can increase your peace of mind and the level of security you provide to your family, as well.

Am I Too Old for Life Insurance?

The agents of Bingham Insurance Group are often asked if there is an age requirement in life insurance. While whole life may not be the best option if you are over the age of 55, term life may provide you with the type of benefits you’re looking for. Most people who are looking for life insurance after they reach a certain age often want something affordable that their loved ones can use to pay their final expenses. If you live in Braselton, GA, discussing your options with an agent will provide you with the answers you’re looking for.

You’re Never Too Old

You’re never told to buy a term life insurance policy. Term life covers a specific span of time, usually 5,10, 15, or 20 years. Because the amount of time is fixed, the rates are more affordable. After you reach a certain age, your premiums will increase but will still be affordable enough to provide you with the coverage you need to pay off any final expenses you may have.

Choose the Right Policy

After you reach a certain age, your financial needs change. Whole life insurance is more expensive because it guarantees the full amount of the policy no matter how long you pay into it. this is the best type of policy for someone who is younger and has a family to support. A term life policy is designed to meet the needs of someone who only needs a specific amount of coverage.

Bingham Insurance Group serves residents throughout the Braselton, GA area. If you are interested in learning more about life insurance, call and talk to a licensed agent. They can provide you with the answers you need to make an informed decision.