Getting yourself insured has become a norm, in fact it is a legal requirement in many countries. Life insurance amongst them is a unique financial product. A premium has to be paid to an insurance company which enters into a legally enforceable contract with you. The company will pay you or your beneficiaries particular sum of money if a specific event takes place.
Life insurance comes with countless benefits. It is a mode of protection of your future. It ensures that your heirs will receive specific advantages if your die unexpectedly. The benefits you will receive is subjected to the policies of insurance company chosen but there are some general benefits as well that other financial products cannot offer. Here is a list:
Heirs guaranteed quick cash
The primary objective of life insurance is to generate a sum of money for your designated heirs. Your specified beneficiaries will receive the money even if you die soon after you get the policy. For example you are killed in an accident after a week of paying premiums, the beneficiaries will receive the full benefit.
Secured future
Having an insurance plan must be a part of your personal finances management. Unexpected events and emergencies are certain. We never know which turn our lives might take. With life insurance, you can guarantee a protected future for your family. For example, you are the only bread-earner of your family. The pressure to generate family income after your death will be less once there is insurance. In guarantees long-term financial being.
Savings
Some insurance policies have another advantage. Your cash keeps on accumulating in your policy as premiums are paid. The cash collect interest payments as per the policy. Even the cash available is free of income-tax free. You can withdraw the cash through loans without paying any income tax.
Retirement funds
Everyone wants to secure their future after their retirement. Life insurance can be an effective strategy to add extra retirement income. Either you will buy a proper structured policy spread over years or a policy comprising single large premium. A proper policy will let you receive additional retirement income which can further be used to make investments.
Tax savings and management
Life insurance policies come with distinctive tax benefits as well. Having an orderly structures policy will let your heirs receive benefits income tax free. There is no need to pay income tax on loans you take from your policy, as mentioned earlier.
This is an effective medium for tax management. This allows us to protect our money from excessive taxes as well. But there are some specific rules your account must comply with in order to get such treatment.
Conclusion
All these benefits are received only if the policy is properly structured. There are multitudes of insurance companies like Viking Insurance which can offer you distinctive products. This is where life insurance consultants come into play. An advice of life insurance specialist can count a lot.
