5 Benefits of Insurance
- Life Insurance payouts are Tax-Free
- Our dependents won’t have to worry about living expenses
- Life Insurance can cover funeral expenses
- Policies can supplement our retirement saving
- The Bottom Line
1. Life Insurance payouts are Tax-Free.
If you have Life Insurance Policy and die while the policy is in force your beneficiaries will receive lump-sum death benefits. Life Insurance payouts aren’t considered income for tax purposes.
2. Our Dependents won't have to worry about living expenses.
Many experts recommend having life Insurance that’s equal to 10 to 15 times our annual income. If you have that size of policy the people who depend on your income should not have to worry about their day-to-day living expenses or other major costs like Children’s Education, Marriage and they won’t need to take out loans from any financial institute or other here and there.
3. Life Insurance can cover funeral expenses.
The funeral cost, any liability, and any other expenses are a substantial financial burden, having a Life Insurance policy. our beneficiaries can use the money to pay it. You get coverage of critical illness riders {CIR}.
Many benefits Insurance policies offer riders that we can add to our policy to enhance our coverage under certain circumstances. For example, If you are diagnosed with a critical illness. You can use this benefit to pay for your care or other expenses.
4. Policies can supplement our retirement savings.
If we purchase a Life Insurance policy, it can accumulate cash value in addition to providing death benefits. As the cash value builds up over time, we can use it to cover expenses, Such as buying a car or making a down payment on a home. We can also tap into it if we need to during our retirement years
5. The Bottom Line
Life Insurance isn’t just for the wealthy. No matter our income level, Life Insurance can ensure that our loved one could make ends meet if we were to pass away. And Life Insurance might be more affordable there we think.
Benefit Of Life Insurance like Death Benefit, Wealth Creation through investment components, Financial Security, Loan Option, Life stage planning.
KEYNOTES
- 82% of People do not have Life Insurance coverage believing they can’t afford it.
- Many people greatly overestimate the cost of insurance.
- In addition to providing financial security for the policyholder’s loved ones, Life Insurance offers Tax benefits and risk coverage. CIR, Tax-Free Income, Cash value, and so on.
Life Insurance is one of the best options that should be part of our financial plan.
Life Insurance is essential for protecting our family, financially in case of a tragedy, but many people need it. In fact, nearly 82% of people in our country (India) do not have life insurance. One reason is that people assume life insurance is too expensive.
Life Insurance:- What it is, How it works and how to buy a policy.
Life Insurance is a contract between an insurer and policy owner that guarantees the insurer pays a sum of money to named beneficiaries when the insured dies. What Is Benefits of Life Insurance? Life Insurance is a contract between a life insurance company and a policy owner.
A life Insurance Policy guarantees the insurer pay & a sum of money to one or more named beneficiaries when the insured person dies in exchange for premiums paid by the policyholder during their term
Life Insurance is a legally binding contract that pays a death benefit to the nominee when the policy owner-insured person dies. For a life insurance policy to remain in force, the policyholder must pay the premium on time or within the grace period.
- When the insured person dies the policy’s named beneficiaries will receive the policy’s face value or death benefit.
- Term Life Insurance policies expire after a certain number of years. But while Life policies remain active though premium has been stopped as per terms and conditions.
- A Life Insurance Policy is only as good as the financial strength of the company that issues its state guarantee funds may pay claims if the insurer can’t.
Things While Buying Life Insurance
- Coverage
- Premium Paying Options
- Policy Term
- Riders
- Term and Condition
- Claim Settlement Ratio
- Advisors Trust Worthy
- Company Goodwill
- Financial Sound
- Own Research/Study
Benefits of Insurance
One of the biggest advantages of having Life Insurance is that it can help accumulate savings. If we have enough coverage in place, then we can easily meet our long-term financial goals. In addition, Life Insurance can help financially protect our dependents, If something happens to us during the policy term.
Benefit of Insurance policy provide as our regular saving, children education and marriage, old age income/pension, respect in society, financial freedom, repay for future liability and so o
What is a disadvantage of Life Insurance?
There are a few disadvantages involved with buying Life Insurance, including the fact that we may have to pay a high premium if we have a pre-existing medical condition.
Violate the trust by not declaring real facts, particularly about health, and not paying the premium on time. In the case of a term insurance plan the policyholder will not receive any maturity benefit if he/she survives the term.
Another disadvantage of Life Insurance is that it’s not always easy to qualify for if you have a pre-existing medical condition, you may not be able to get Life Insurance at all, and even if you can get coverage, it may be more costly than anticipated. So it is better to have Life Insurance when you are healthy.
