Reviews Glow aims to provide the detail insight of insurance sector. We aim to provide you handpick information that you need to take any insurance related decision. Life insurance contains the largest portion of insurance sector; and in this post we are going to share some most important benefits of life insurance so you can decide whether you want one or not. If you are not certain about the fact that life insurance is the best investment strategy for you right now; then stick to the post till end to get clear your doubts that irritates you. Let’s get started!
As we all know that in teenage and adulthood we don’t have much financial burden or liabilities on us. But as the time passes, by having the family and dependable, we have to care about their health, education and other financial matters. So the expenses increases drastically with the passage of time. But on the other side of coin the income does not increases with the same proportion.
Let us discuss about the fact of life, nobody in this world lasts forever. Everyone has to leave this world. Some people die after enjoying their long life (after retirement) but some die during their job, leaving their loved ones without any financial security, leaving the heavy debt, with no source of income to them.
Life insurance is no doubt the best solution to all the above explained situations. But it is important to select the right policy that fits on your living style criteria, while choosing the life insurance policy keep in mind your salary/income, debts, mortgage, education and health expenses of dependents.
TOP ADVANTAGES OF LIFE INSURANCE
Life protection or Death Benefit
The basic aim of life insurance is to compensate the biggest loss of your life to your family members. The grief may be intense if you are the main bread earner in your family. In the moments of great sorrow to your family, the claim money of your life insurance will give them some relief from financial aspect. Although it does not lower the sorrow of departure life; but still it is necessary to have the insurance backing your life. The life insurance claim will replicate your monthly income. Depending on type of life insurance it can be useful to provide you lump sum claim money after the maturity of policy. This will help you enjoying your life, achieving your goals or paying your debts etc.
Life insurance claim amount is tax free which means beneficiaries of insurance like you in case of term insurance or your family members in case of your death and whole life insurance policy will not have to pay any tax on the amount received against claim. In general the death benefits are income-tax-free, estate-tax free to the beneficiary. Getting a loan on policy is tax free. There is a tax deferred benefit as the cash values grow. The withdrawal of cash value maximum to paid premium are tax free.
So get the benefit of tax exemption by having the right insurance policy while planning your financial goals.
OTHER ADVANTAGES OF LIFE INSURANCE
Here are 7 more advantages of purchasing the life insurance policy now.
The life insurance claims are huge lump-sum money. But you have to pay the premium on easy yearly installments and your loved ones will get the lump-sum amount when claimed.
The life insurance companies provide discount on yearly premiums when some one buy policy for himself along with his spouse (either way round). So you (or your family) will get more profit/benefit with less investment. Which is one of the most important and desired goal of financial planning. This is also known as multi policy coverage.
To create more interest in policy, insurance companies also provide different packages that will give monetary benefits to the policy purchasers.
One of the great feature offered by some of the insurers is to adjust or reassign the policy premium as per policy holder convenience, ability/budget or requirements. But to avail this facility the policy holder may require prior approval from insurer.
Depending upon the life insurance type, some policies provide a cash value. In cash value a predefined portion of policy premium that is paid by the insured is taken out. This portion is invested in market to get the profit on it. From the profit earned by investment the policy holder can avail the loan or can also get the profit at the time of claim or maturity of policy.
Most of the insurer provide the advance feature of paying the policy amount immediately when claimed in case of sad incidents of your departure. This is to provide the immediate financial relief when your family is going from the sadness trauma of your loss.
Keep in mind that getting life insurance policy in adulthood is much easier, because with the passage of time, risk of immediate death or serious illness increases when you get older, so you have to pay high premium rate to get the policy. Most of the insurer did not allow policy to 65+ age people. So get your policy now to avail the benefits of life insurance.
After reading the complete post we hope that you get the answer of why you need the life insurance at early stage of your life. Still you have any doubt, feel free to ask your questions in the comment section.