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Benefits of Life Insurance

A policy that pays out a sum of money either on the death of a person or the end of the set period is referred to as life insurance. In life insurance, the insurer agrees to pay a particular amount of money at the end of the month for agreed period of time. Here are some of the advantages of life insurance policy.

The first benefit of life insurance is the life cover. One of the major benefits of life insurance is life cover. Life cover is referred as the amount of money that your insurance company to you or your nominee in your absence. As a result, the insurance firm will ensure that your loved ones will benefit from your cover even if you are absent. You can appoint a nominee at the time of purchase of the cover to take the money in your absence. You children will be assured of their well-being since the nominee will take charge of your benefits in case of any unfortunate thing. It is necessary that you buy a life cover that is enough to serve your children effectively. If possible you can even buy a life cover that is ten times your income.

Life insurance is also a long term saving. Since you will be paying a specific amount of money every month it becomes a systematic way of saving. This is necessary as you will find that when you reach your retirement period you would have saved a lot of money. Apart from that you would have achieved your goal of saving money maybe for your son’s wedding or starting a business. To add on that you will also get double benefits protection as well as savings.

You can also plan for specific stage of life using this life insurance policy. Most of this insurance firms have a provision of product tailor made at specific life stages. As a result, you and your family will be able to plan various goals at different life stages. For example, you can plan to buy a car, a house, a land, and educating your child, planning your wedding as well as saving money for your retirement.

We also have a tax advantage as a benefit of life insurance. Most insurance firms are covered by the constitution to the sense that you will not be taxed when saving with them. To start with, you are not going to be taxed from your premiums which you are going to pay every month. The next thing is that you are not going to be charged from your earning as money grows. Apart from that when you are ending your service you will also not be charged.
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