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-   -   Benefits of life insurance policy? (http://www.thefinanceforums.com/showthread.php?t=5804)

michaelK 08-22-2011 06:22 AM

Benefits of life insurance policy?
 
Hi all,

Everyone says, life insurance is beneficial for us? plz tell me how?

Thanks in advance

London946 08-23-2011 01:07 AM

Re: Benefits of life insurance policy?
 
Simply put, life insurance covers you when you die. If you have life insurance, your beneficiaries will get a lump sum depending on your policy and plan

rocco22 01-05-2012 07:31 PM

Re: Benefits of life insurance policy?
 
Learn about the benefits of applying for a Life Insurance Policy. Compare and select the best Life Insurance Policy for your needs.


runawaykinms 01-06-2012 03:41 PM

Re: Benefits of life insurance policy?
 
That is a good question, here are a few benefits:

1. Family/beneficiary receives a lump sum of money in the event of your death.

This alone is enough of a benefit to get coverage. Here are some examples of how this can help your family.
-Funerals are costing on average around $7500 today and some cost more like $10,000. Who is gonna be stuck with that bill when you die.
-Are you married. If so, do you want your spouse to be able to maintain their current lifestyle if you die. I want my spouse to be able to continue living a good life and not have to file for bankruptcy and be left to fend for themselves completely.
-Do you own a home? I suggest having enough coverage to pay off your mortgage in the event of your death. This way your spouse and/or kids can continue to live in the home after you die. This will be a small but important comfort for them.
-Do you have kids? If you have children along with the responsibilities you now have, you should consider the financial responsibilities involved. Life insurance is a way to help with that.

2. Tax Benefits

In most states your estate (Property, cash, stocks, etc) is taxed and creditors can go after it as well to obtain payments. However, life insurance payments are usually not taxed and protected from creditors. A lot of people use life insurance as a tax friendly way to transfer their wealth at death.

3. It is cheap (For most people)

Term life insurance is very affordable. You can often find policy for $200,000 for under $20 a month. Depending on your age and health conditions, the prices are unbeatable for the peace of mind you get in protecting your family.

These are just a few of the reasons I can think of that are benefits of life insurance. Hopefully this is helpful!

TheresKeenan 01-19-2012 11:40 AM

Re: Benefits of life insurance policy?
 
The real benefit life insurance is the living benefit. Not only are you assured that your family will be protected from loss of income, loan payments and the high cost of funerals. With the correct product you can also save money. In a whole life policy cash value grows. You can always withdraw your cash as needed for other expenses. If purchased for your children when they are young, you may be able to hand them a substantial cash stash when they become adults. Speak with an insurance professional about the living benefits of life insurance.

littleroc 01-19-2012 01:31 PM

Re: Benefits of life insurance policy?
 
In my life I have a wife and kids and if she or I were to pass away they would be taken care of very well. I have a 20 year term policy for 500k. You don't need anything past that because your kids should be out the door and you should have invested wisely for retirement by then.

Ashu 02-03-2012 05:38 AM

Re: Benefits of life insurance policy?
 
I think Michael you might have got answer of your query. In short Life Insurance is the way to secure your life financially so that your family or nominee will get that financial help after your death. We can choose Life insurance plan as per our requirement and financial budget. There are many companies available in market which provide Life Insurance with different benefit factors.

elijahmorell 02-09-2012 02:15 AM

Re: Benefits of life insurance policy?
 
Key Benefits of Life Insurance:-
Asset Protection:-
The core benefit of life insurance is that the financial interests of one’s family remain protected from circumstances such as loss of income due to critical illness or death of the policyholder. Simultaneously, insurance products also have a strong inbuilt wealth creation proposition. The customer therefore benefits on two counts and life insurance occupies a unique space in the landscape of investment options available to a customer.

Goal based savings:-
Each of us has some goals in life for which we need to save. For a young, newly married couple, it could be buying a house. Once, they decide to start a family, the goal changes to planning for the education or marriage of their children. As one grows older, planning for one's retirement will begin to take precedence.

Clearly, as your life stage and therefore your financial goals change, the instrument in which you invest should offer corresponding benefits pertinent to the new life stage.

Christina123 03-07-2012 04:56 AM

Re: Benefits of life insurance policy?
 
Hi,
The most important benefit of life insurance policy is that the financial interest of the policy holder remain protected from conditions such as loss of income due to critical illness or death of the policy holder.

Wealth-e 03-07-2012 07:44 AM

Re: Benefits of life insurance policy?
 
Some of the life insurance advantages are:
  • If an estate owner has not accumulated enough assets for his family,
  • Insurance quote helps create an instant estate for the sake of the Family’s security.
  • Life Insurance provides the option to pass equal assets to the children who are not active in the Family business at the time the family business is passed on.
  • Life Insurance policies can help secure the future of children for college/educational purposes as the amount of life Insurance Policy increases on a minor’s or parent’s life.
  • The growth of a cash-value policy is tax-deferred - you do not pay taxes on the cash value accumulation until you withdraw funds from the policy.
  • Life Insurance can be useful in paying estate taxes, along with other estate settlement amounts. Federal Estate Taxes are due nine months after death.
  • If there’s a Business Transfer, life insurance can provide ready cash to finance a transaction between business owners who are ready to buy the deceased owner’s share from his or her estate after death.
  • If there’s a home mortgage, one can pass the family residence to their spouse/children to free them of any mortgage if one has a Life Insurance Policy for the same. It is preferred to have a decreasing term policy that decreases in face amount as the mortgage balance is paid down.
  • Life Insurance helps retain your Business from the loss of a key employee. Untimely death of a key employee can pose severe financial loss to the business.
  • The right insurance proceeds can provide liquidity to pay off personal loans or business loans.
  • Charitable Remainder Trusts provide tax benefits. Life Insurance helps replace a charitable gift.
  • A lot of Insurance products presently provide good returns, which could be a beneficial way for saving necessary funds for retirement years.
  • Benefits are available immediately and may be used to help pay expenses such as final illness and funeral costs, eliminating the need to sell estate assets to cover these costs.

mableswift 03-28-2012 03:49 AM

Re: Benefits of life insurance policy?
 
Various benefits of health insurance policies are:
It helps you get financial help at times of illness.
You can get your treatment done from the best of medical advisers with the help of health insurance as they help you get full compensation of the cost involved in the treatment.
You should always have a health insurance as it is the most beneficial asset of your life.

_______________________
Health Insurance Florida

addybrown33 04-13-2012 05:27 AM

Re: Benefits of life insurance policy?
 
Life insurance policy provide protection of your family if any financial crisis, the benefits of life insurance policy is you secure your life is anything happen to you.

raj9369 09-21-2012 07:16 AM

Re: Benefits of life insurance policy?
 
1.Risk Cover
2.
Planning for life stage needs
3.
Protection against rising health expenses
4.
Builds the habit of thrift
5.
Safe and profitable long-term investment
6.
Assured income through annuities
7.
Protection plus savings over a long term
8.
Growth through dividends
9.
Facility of loans without affecting the policy benefits
10.
Tax Benefits
11.
Mortgage Redemption


preetisoft2 10-03-2012 02:40 AM

Re: Benefits of life insurance policy?
 
It secures our family life.

SMSF101 10-11-2012 09:36 PM

Re: Benefits of life insurance policy?
 
Life insurance is like having a big piggy bank that is more secure and reliable. With it one's life as well as his family's sake is protected. Benefits from having a life insurance can range from a to z but an individual must also be keen and careful in choosing the best among the various companies that offers this kind of insurance. If you choose the right one, you'll surely be at ease for your retirement or in the day you'll only think of enjoying life until the end point of your journey.


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