Twelve Key Reasons why a Person needs Life Insurance
Concepts like Life Insurance uk and term insurance are fast gaining momentum because it protects family or designated beneficiaries in the event of death of a bread earner. Moreover, there is a gamut of policies that may cover risks like death, diagnosis, terminal illness, permanent disability, accidental death or need for long term care.
Not only Life Insurance uk protects your family in the event of death, but it also acts as an investment vehicle. Your Life Insurance uk can provide you a host of benefits like you can take a loan against your policy, tax benefits, and benefits to your children, while you are still alive. Choosing a right insurance policy can be time consuming. People soon are made to realize that life insurance can act as vehicle for savings and security.
The article provides comprehensive information on why person should have a life insurance
Financial Security- The most recognized fact of life insurance is a designation of beneficiary. Because of this clause your family and loved ones are protected in the event of untimely or unexpected death. If you have a life insurance in place, you will be sure that your beneficiaries will receive a constant cash flow of income. So, now you can RIP.
It helps to secure the future of Children- Who will take care of your child’s education if you die? This is the most common question that pesters us. Now, don’t freak out here and there, life insurance policy is a solution for it. The amount of a policy or premium accelerates as the life of minor or parent’s life increases.
Paying Taxes- Life Insurance can do wonders not only in your personal life, but also in the business life. With the help of life insurance you can pay real estate taxes, and other settlement amounts.
Business Transfer- So, now you may be wondering how life insurance acts as amazing tool if you want to transfer your business. It’s easy- it provides you stream of income to finance a transaction between business owners and those who are willing to buy the share of deceased property in the event of death.
Protect the loss of Key Employee- Life insurance protects organizations in the event of death of their key employee. Untimely death of key employee can cause a huge financial loss to the organization.
Now your child can get his/her share- The major benefit of life insurance policy is that your child will get his/ her share of a property even he was not active before your death. This gives you one more reason to RIP.
Tax Benefits- Life Insurance is considered perfect tax saving instrument. The policyholder will get a deduction on such investment under section 10(10A) of Income Tax Act, 1961.
A benefit of Home Mortgage- If you have a home mortgage, then obtaining life insurance policy becomes all the more important. If you have a policy, you can easily transfer to spouse/children to free them from mortgage. It is preferred that you obtain decreasing term insurance policy because the amount of policy decreases as the mortgage is paid.
Provide the benefit of Liquidity- Life Insurance has another feather on cap, it provides liquidity in case you want to pay off your personal or business loans.
Retirement Saving Option- Majority of the insurance products provides great returns at the time of the retirement. As we all know, there are two kinds of insurance policy one is permanent insurance policy, which cannot be categorized as cheap life insurance quotes because this policy serves more as an investment vehicle. Other is a term insurance policy, which can be categorized as cheap life insurance quotes, but it doesn’t include investment as an option; hence, they are significantly inexpensive than others.
Benefits for Singles- Most of us think that singles that don’t have any responsibility need not to take any insurance policy albeit every person needs an insurance policy. How about paying your funeral expenses at the time of death or who will care for your grandma or grandpa in the event of your death. Life Insurance is the single option that can protect singles from any unforeseen circumstances.
Multiple Beneficiaries- Today life insurance is not like your age old brick and mortar type insurance where you used to add single beneficiary. Now, you can mention multiple beneficiaries, if you want to do so. For example, you can add spouse as well as children listed under the name of designated beneficiary. You can also specify percentage of proceeds that these beneficiaries will receive. Most people appoint wife as beneficiary when their children are young, and when child matures, they alter their policy, and add a certain percentage of proceeds in the name of their child.
Another option that these insurance companies provide is contingent beneficiary. Supposedly, if primary beneficiary dies, than contingent beneficiary will receive your death proceeds. The designation is revocable and irrevocable. Simply speaking, if the designation is revocable you can change your policy according to your whims and wishes. If the policy is, irrevocable you can’t change the policy without the consent of the current beneficiary.
Types of Insurance Policy
The market is flooded with the insurance policies like term insurance, permanent insurance, and participating policy. Every policy has its own unique features. If you are looking for cheap life insurance quotes than, term insurance can be your option, but if you are looking for an investment viewpoint or retirement viewpoint, permanent insurance gain an edge over other insurance policies.
A caveat to remember, seek help from your colleagues and friends who have their own policies.
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