Life insurance can provide peace of mind to you and your family should the worst come to pass. But life insurance offers many benefits that are often overlooked. We’ll explore these hidden treasures in this post.
Life insurance generally takes on two forms: “Term” and “Permanent.” Term insurance, as the name implies, provides death benefit protection for a set period of time. Permanent insurance, on the other hand, protects you for life. While the comparatively lower premiums make term insurance appealing, permanent life insurance is also worth exploring.
Here are five benefits permanent life insurance provides:
- Good Habits: Paying your premiums every month will help you form positive financial habits such as saving more.
- Final Expenses: Life insurance can not only help your family pay off funeral and unforeseen medical costs, it can also pay off the mortgage, or pay for a child’s education. The benefits can take the place of your income and save your family from falling into debt.
- Leaving A Legacy: Buying a policy with an heir named as a beneficiary is one method of securing an inheritance for your loved ones. The policy benefit can even cover estate tax. If you expect to still have dependents or to fund funeral expenses in your retirement, a life insurance policy is worth considering.
- Growth and Income Tax Free Access: Cash value within a permanent life insurance policy grows tax deferred, with regular crediting that can be used to pay premiums or increase death benefits. Some types of policies enable you to participate in the stock market without downside risk. You can borrow against a policy tax-free and apply the proceeds to achieve other financial goals.
Some families decide to buy a variety of policies, which allows for flexibility with their premiums. To learn more about life insurance and how to improve your financial life overall, visit Syncis at https://www.syncis.com/blog/.