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Life Insurance Policy

Life Insurance is an asset. That’s a fact. However, most people find sammenligne hurtiglån hard to consider. They are wired with the idea that insurance for car, health, homeowners, will just reimburse the client in case of economic loss. But, life insurance is far from that. It actually compensates the policyholder for a circumstance that would definitely occur in the future.

Read further to know how life insurance policy helps a policyholder’s financial aid:

Non-taxable until withdrawn

The most obvious benefit of a cash-value component is the exemption to pay taxes. Whether it is a capital gain, interest, or dividend in your insurance policy, it is non-taxable, as long you won’t withdraw the proceeds. You can avail the same benefit if you put your investment on your retirement accounts.

Interestingly, if you avail of the premium life insurance, you can maintain the policy until you reach the age of 120, so long as there’s no delay on your premium payments.

You can advance the cash value to send your kids to college or purchase a house

The good thing about life insurance is that you can use your investments without commission and fees if you want to have more worthwhile investments such as sending a kid to college or buying a house. However, that would be a different scenario with regard to the retirement plan. Once you use your retirement saving other than its true purpose, you may have to pay the income tax due plus penalty.

For this reason, you should not jeopardize your retirement plan. You should understand the difference between life insurance and a savings account. When you borrow money from your insurance policy, and you die without paying it, your heirs would likely suffer from debts. Thus, you need to be wise in borrowing your life insurance’s cash value.

You can avail death benefits even before you die

This is the most popular offering of insurance term policies. A policyholder holder may claim from 25% to 100% death benefit if critically ill or developed certain health conditions such as stroke, cancer, heart failure, and other kinds of sickness. The upside benefit of this is that you can pay your medical bills and give you a chance with life.

Can replace your income for the benefits of your heirs

Life insurance can be a good replacement for your income once you die. If you are thinking about your family’s future in case you die, life insurance could sustain the family’s financial needs. This means that your beneficiaries can use the money for tuition fees, pay debts, or other expenses. Other policyholders, however, avail life insurance as an inheritance for their beneficiaries.


Life insurance is a difficult and sensitive concept. But, it increases financial aid and secure the family’s future if an unexpected event happens. Having an insurance agent would be of great help to better understand the topic and determine the appropriate policy you need.

Post Author: Eleanor Horton

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Having this option means that if you ever want to increase the amount of lump sum payout of your policy in the future, you are eligible to do so without providing current medical status, or simply, no questions asked.

The insurance company will always assess their risk when a client has medical conditions. Being overweight may lead to other more serious cardiovascular diseases or diabetes so that the company may have to adjust the policy terms. You may also undergo a medical examination that ensures that you are perfectly healthy despite your weight. The severity of your asthma may also matter.

If you have just started smoking, the company may encourage you to stop it in order to not compromise your health. If your smoking has already damaged your lungs, then an insurance company will have to assess their risks depending on the severity of the damage and your own management of the addiction.

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