There are very many advantages associated with having life insurance. Life insurance provides you with a high life risk cover that keeps you and family protected in a case of an unfortunate event. You and your family can face a lot of problems if you die without life insurance. Such problems may be financial and emotional. Debts, mortgage bills and funeral expenses are the financial problems you and your family will face. When you have life insurance the death benefit is going to go to your beneficiary. They can also use it how they like. They can pay mortgage and pending debts using this money for instance.
Having life insurance ensures that you are able to enjoy tax benefits. Life insurance death benefit is not taxable. There is the cash value and the dividends that accumulate and they are not also taxable. You can take advantage of policy loans in this case. When your cash value keeps growing you will not have to pay taxes. In fact all policy loans are normally free from income tax. There will also be no taxation on any cash you withdraw. This means you will enjoy more tax benefits if you have life insurance.
Improved flexibility is an added advantage of life insurance. The company, the coverage, the policy and the duration of the policy will all be controlled by you. Even after you die your beneficiary has a lot of flexibility. This is because he can use this money however. The insurance company has no control over this money once it reaches the beneficiary. With life insurance policies it can be possible for you to make some adjustments. For instance you can decide to lower the premiums. This is in case your income decreases.
With life insurance you don’t have to spend a lot of money because it is very cheap. People are now living longer and this is making life insurance rates cheap. Various insurance companies are also competing nowadays. This is enabling them to attract more customers because of lower rates. Having a life insurance policy helps you get higher returns on investment and this is an added advantage. This is because most life insurance policies offer bonuses that no other investment can offer. The money you get from life insurance will always be safe and it will also cover risks. This means it will fetch good returns. It will also be returned fully as sum assured once the term has been completed or after the insured has died. The returns given and the money invested will be safely refunded in this case. Having life insurance can help you enjoy very many benefits.