Life insurance is a must-have for your financial portfolio.

Key financial benefits you may be overlooking.

It’s true. We believe in life insurance. It’s a powerful financial tool with a wealth of benefits for you and the important people in your life. But it does more than just give peace of mind. Life insurance has additional benefits. Here’s a look at five of our favorite reasons why people like you should make life insurance part of their financial portfolio.

It helps keep things going.

First and foremost, life insurance is about protecting the people who rely on you. It offers death benefit protection that will give your beneficiaries money when you die. If there’s anyone who relies on your income for their livelihood—your spouse, partner, kids, a friend or a family member with special needs—life insurance is one of the best ways that you can protect them. You can’t buy love, but you can ensure that you take care of your loved ones.

It can help you pay for the big stuff.

Some life insurance products, like whole life, universal life, and variable universal life, include an important feature known as cash value. Cash value accumulates over time and may become a valuable asset. You can use your policy’s cash value to help pay tuition bills, make a down payment on a house, give your retirement income a boost—. It’s your money, and you can use it any way you see fit.

Lower your risk.

People don'’t always think of insurance as a financial product. But some experts believe that adding life insurance to your overall financial portfolio may improve your portfolio's performance. According to a study by Ibbotson Associates* (an independent firm and a leader in asset allocation research), supplementing the fixed-income portion of a portfolio by adding whole life insurance may improve overall portfolio performance and reduce risk.

Taxes, taxes, taxes.

Another feature that makes life insurance so attractive is its many tax advantages. In most cases, your policy'’s death benefit will usually be paid to your beneficiaries free of federal income taxes; they can even use it to help offset any estate taxes.

If you choose permanent insurance, like whole life, universal life, or variable universal life, your policy’s cash value has the ability to grow tax-deferred. You can even access your cash value tax-free too, which means that you can have a tax-free source of extra income if you ever need it. Of course, if you access your cash value through loans or partial surrenders, you will reduce the cash value and death benefit.

Can be more affordable than you think.

Whether you'’re just starting out, looking to protect a growing family, or getting ready to rock retirement, chances are life insurance can help. And with a wide range of solutions comes a wide range of prices. When you include term insurance in the mix, you just might be surprised how affordable coverage can be. Some term policies cost less each month than two tickets to a movie. This can be a good first step toward getting the protection you need.

These are just five things that make life insurance a powerful financial tool for everyone. Depending on your situation, there are probably many more. Check out other articles on this site, or, for a more personalized approach, contact an agent for a free, no-obligation meeting to get a better understanding of how life insurance can help you and your finances. Please note that New York Life Insurance Company and its agents do not provide tax or legal advice. Contact your legal or tax advisor to find out how life insurance can affect your personal tax strategies.

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  • ”Estimating Expected Return and Standard Deviation of New York Life Insurance Company General Account for Investors, “ Ibbotson Associates, 2009