Study: My Understanding of Insurance

Merits of Life Insurance

Having a life insurance policy can help you enjoy very many benefits. In case of an unfortunate event you and your family will be protected if you have life insurance. Dying without life insurance can create a lot of problems for your family. These include financial and emotional problems. Financial problems may include debts, mortgage bills and funeral expenses. When you have life insurance the death benefit is going to go to your beneficiary. They can also use it how they like. For example they can use this money in paying debts and paying mortgage.

Having life insurance ensures that you are able to enjoy tax benefits. Life insurance death is not eligible for taxation. There is the cash value and the dividends that accumulate and they are not also taxable. In this case it will be possible for you use policy loans. In this case you will not have to pay taxes when your cash value keeps growing. All policy loans are always free from income tax. Any cash withdrawals you make will also not be taxed. This means the tax benefits you will enjoy from having life insurance are endless.

Life insurance policy enhances improved flexibility. You will enjoy flexibility in all aspects including the company, the policy, the company and the duration of the policy. Even after you die your beneficiary has a lot of flexibility. This is because he can use this money however. The insurance company has no control over how he decides to spend that money. You can also make some adjustments when you have life insurance. For instance you can decide to lower the premiums. This is in case your income decreases.

With life insurance you don’t have to spend a lot of money because it is very cheap. Life insurance rates are now very cheap because people are now living longer. There is also a lot of competition because insurance companies are many. This is making them lower their rates so as to attract more customers. Having a life insurance policy helps you get higher returns on investment and this is an added advantage. This is because most life insurance policies offer bonuses that no other investment can offer. The money you get from life insurance will always be safe and it will also cover risks. You will be able to fetch good returns because of this. It will also be returned fully as sum assured once the term has been completed or after the insured has died. Both way, the money invested and the returns given will be safely returned. Having life insurance will help you enjoy all the above benefits.

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