Nowadays, the number of investment plans available today are many, but the most important one is life insurance. Some people think that they should take a life insurance cover when they grow old, which is wrong. Other available options for investing are bank deposits and other savings plans. Life insurance not only provides funding for other financial goals later on in life, but it offers security for your family members when the need arises. Below are some reasons why it is advisable that you take a life insurance policy now.
Financial security is a prime and vital aspect because, in the case of death, your family is protected. It is hard to predict the future, not to mention the many untimely deaths being reported every year. It is your duty and responsibility to ensure that your family members are fully secured even when you are gone. Insurance plans provide this type of security using different ways like income substitution, which is lost after your departure and your children expenses.
You accomplish future goals through a life insurance cover. If you plan and set a goal, the next thing is deciding the amount of money that you need to attain your goals. You can get some assurance from insurance policies when it comes to funding in some untimely scenarios.
You can receive a standard flow of income if you take up a life insurance cover. If you retire with a life insurance cover, you can be assured that you will receive a fixed income. It is difficult to predict the working life of a person especially now that we are all faced with issues and threats such as sicknesses or companys’ burnout. A person’s retirement period can be long compared to the working period that is why it is vital to gather up all one can during the working period so that they can enjoy their retirement. To achieve this, you can plan to spend on an annuity.
When you buy a life insurance cover, you receive several tax benefits such as maturity benefits which are not taxed, and further the payable premium can be subtracted when calculating the tax using the standard income tax act.
You can see there are many benefits of buying a life insurance policy like financial security, investments and saving. You should think if taking up at the earliest time possible. Life insurance covers should be taken even when they are not needed. If a person is the sole bread winner in a family they should be insured.
If you are a working spouse you need to take a life insurance cover.