Every individual loves and cares for their lives and does all possible things to live long. If we think about any way to secure the life of our families, then life insurance comes up for sure at once. Life insurance protects your family in tragedies and allows you to leave tax-deductible amounts for them when they die. It is also used to pay off your mortgage and personal loans, like your car loan. When you retire and your employer no longer insures you, your personal life insurance will follow. When resources are low, this insurance will also replace your family's income so they can maintain their quality of life. Here are some advantages of having life insurance in light of securing lives:
- Tax-Free Payouts: If you have a life insurance policy and die during your insurance's validity period, your beneficiary (family) will receive a lump sum death benefit. Life insurance expenses are not considered income for tax purposes, and your beneficiary does not have to report this money when filing a tax return.
- You Don't Have To Worry About Living Expenses: If you have life insurance, you don't have to worry about the living expenses of you and your family. It is recommended to have life insurance as its coverage amount equals seven times your annual income. Thus, it can be beneficial in paying up your loans, school college fees of your children, daily expenses, etc.
- Life Insurance Can Cover Final Expenses: If you have a life insurance policy, it can cover all Final expenses at the time of your death. Therefore, your family can use it as a source of income without dipping their savings or using credits.
- Provides Coverage for Chronic and Terminal Illness: Life insurance provides coverage amounts for chronic and terminal illnesses. Having a life insurance policy, you can benefit as all your expenses would be payable then by the insurance company even when you are living.
- Guaranteed Income and helps in Wealth Creation: Life insurance policy has the benefit of guaranteed income which offers some guaranteed amount on the happening of unusual events. Also, it helps in wealth creation as it helps to invest your income in profitable schemes and plans.