Why Whole life insurance is a whole lot better?
Most financial experts reckon insurance to be an important part of sound financial planning. It is a real important measure one should take especially if you are the sole bread-winner of the family, and their finances are heavily dependent on you. Insurance ensures that they are not left high and dry in times of need. Your spouse or children will find insurance to be a boon that covers at least the financial void in their life. In this case, both whole life insurance and term insurance give the grieving survivors the required financial support.
In the event of untimely death, a huge burden of financial issues falls on the survivors. Right from funerals to the last rites, it is all a very costly affair. Keeping the irony aside, there are many insurance plans that even cover the costs of the funeral. Sometimes even the most comprehensive health insurance plan does not cover all the medical bills and debts. In this case life insurance can be a good way to supplement the cash flow. If you plan well, sometimes life insurance can cover the mortgagees left behind as well.
Have not made enough money in your lifetime to leave behind an inheritance to your family or loved ones? You can correct that by investing in an insurance plan. You can name your heirs as the beneficiaries to the insurance plan benefits and hence in this way, make sure that you leave behind a considerable amount of money to them. There are also a few insurance plans that have tax free cash which can be judiciously used by the surviving heirs to pay off estate taxes. This can, however, only happen with a quality life insurance plan which is comprehensive enough to cover all of this.
There are also a few types of insurance in which the cash benefits can be withdrawn upon request by the owner. An advantage of this kind of savings is that the money credited as interested in this particular case id tax deferred. Another way of channelizing money that is earned through insurance policies is to make a charitable institution as a beneficiary to the plan. By naming a charitable institution you can also deduct the premiums and value of the policy from your taxes. All in all, it is a win-win situation.
Insurance is not just for the cautious lot anymore. If you are thinking of making a wise investment, think insurance.
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