Life Insurance Thursday: 8 Need-To-Know Facts about Life Insurance by Melissa Blenker February 5, 2015 Sometimes, it’s best to know the basics, especially when you are purchasing life insurance. All of the information can be overwhelming, but we want to make it as easy as possible for you. Here are 8 need-to-know facts about life insurance: You can use your life insurance policy for cash value loans. You can take a loan out of your life insurance policy to fund anything from medical bills to home improvements. The accelerated benefit rider is a benefit that you can use to pay for basic expenses if you are diagnosed with a terminal illness. When you pass, your death benefits from your life insurance policy can be probate-free. If you lose your job, you lose life insurance coverage that is provided through your employer. Life insurance can help cover the debts that you may leave behind for your loved ones, like a mortgage. When you pass, life insurance can help you leave an inheritance for your children. If you pass away while you are in a foreign country, your policy should still pay out to your beneficiaries. However, some policies may exclude certain countries. Life insurance benefits are typically income tax-free, so your beneficiaries will not have to worry about paying income tax.