Life insurance helps you protect your family financially when you die, especially if you are the breadwinner. It is different from an investment but very close to a saving. The money has no value until it is claimed
Here are some advantages of life insurance
With life insurance you have guaranteed protection. The main advantage of a life insurance policy is the death benefit. When you die without a life insurance policy, you can leave financial and emotions problems for your loved ones. Issues such as debts, bills mortgages and funeral expenses can pose a big risk to your family’s financial well being. With a life insurance, the funeral expenses will be covered, some money will be used to clear some debts and if any remain it will be sent directly to your family.
You are likely to be less worried about your death affecting your family. Nobody can tell when death might befall them but most of us are aware of what might happen when we leave. With a life insurance you can have fewer worries about the consequences of your death because you know the financial needs of your family will be taken care of when you die
You can choose a policy that fits into your budget. There are two main types, whole life and term life insurance coverage. Term insurance is a simple form that only pays if death occurs within the term of your policy. Whole life is a permanent insurance policy that covers your death at any point in your life. If you are low in finances, you could go with the term insurance and increase the payments for more terms as time passes.
Permanent life insurance policies come with the cash value benefit. You can grow your cash value depending on the policy of the service provider. If you are looking to benefit from an investment, then a permanent insurance is the best for you. you can use the money from your cash value to pay off debts, take a mortgage, buy a real estate or live off it like a retirement fund. Cash values life insurance grows tax deferred, has a tax-free withdrawal policy and is has laws protecting it from creditors. All life insurance policies are protected against income tax as long as they don’t go above the premiums set for your insurance.
You as the customer, have flexibility when it comes to the company, policy, duration, coverage and beneficiaries. Insurance service providers will allow your family to spend the death benefits on what is required rather than forcing them to spend it on what they think they should cover.
Taking a life insurance when you are younger is cheaper and saves you the hustle of looking for one when you are older. Coverage costs for an insurance policy are cheaper when you are single because you do not have to include a spouse in your policy. The older you get, the more prone you are to accidents and illnesses. Most life insurance policies don’t cater for individuals with health issues. When you a life insurance while young you can use the cash value benefits as an investment to secure your business.