Redstone Federal Credit Union

r e d f c u.o r g | 9 R E D S T O N E I N S U R A N C E S E RV I C E S 4 Ways to Access the Value of a Life Insurance Policy Life insurance isn't just for the benefit of survivors. Certain policies can also provide cash value during your lifetime. Life insurance can be used as a flexible financial tool to cover a variety of basic protection needs and planning strategies. Your life insurance policy offers death benefit protection to help provide financial support for a surviving spouse or income for a child, family member, or dependent with special needs. It can also go toward estate taxes and other needs. But the benefits of life insurance aren't only for survivors. ere are also ways to access the value of a policy during the policy owner's lifetime. Policy owners may find a policy's cash value helpful when a major expense or the need for ongoing care arises. Before you consider accessing your life insurance policy during your lifetime, talk with a financial or tax professional about any tax implications. If you own a cash value life insurance policy, including all forms of universal life, you may build underlying cash value over time, which can be accessed while keeping at least a portion of the policy's death benefit intact. Here are four options you may have for accessing the value of a life insurance policy while the insured is still alive by drawing on the cash value. 1 Policy Loan: Borrow against the cash value. Provided that your policy has sufficient remaining cash value to pay ongoing charges, your policy's death benefit will remain the same. 2 Withdrawal: You can take a withdrawal from the policy's cash value without interest charges. A withdrawal charge may apply, and any policy withdrawals will reduce policy values and may reduce benefits. 3 Policy Surrender: In many cases, you also have the option of canceling the life insurance policy and receiving a cash payment for its net cash surrender value (the policy's accumulated cash value less any outstanding policy debt and surrender charges). 4 Living Benefits: If you meet certain criteria, you may be able to tap into a portion of your policy's death benefit during your lifetime through living benefits. For example, if major health issues arise, you may be eligible for living benefits. Consult a financial professional to discuss whether living benefits may be useful. Redstone Services Group SM , LLC d/b/a Redstone Insurance Services, is a wholly owned subsidiary of Redstone Federal Credit Union ® (RFCU ® ) but are separate entities. Redstone Services Group, LLC is a licensed insurance agency that sells insurance policies issued by third-party insurance companies. The insurance products are not products or obligations of RFCU, are not NCUA or federally insured, and are not endorsed, warranted, recommended, or guaranteed by RFCU or any government agency. The insurance products may be offered by a dual employee who also sells insurance products on behalf of a third- party insurance company. RFCU and its affiliates are committed to fair, equitable, and nondiscriminatory practices.

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