Let's face it - most of us do not want to think about the possibility of dying, and what might happen after death. But if you have a partner and a family, then it is important to ensure that they will be taken care of if the worst happens. Life insurance is the best way to do it, especially if your partner is to stay at home to care for children, it helps to ensure that your family will not suffer financially from the loss of your income if you die or are involved in an accident causing permanent disability. And even if you are a two-income household, life insurance will help ensure that your family remains financially stable. It is the norm to benefit from this type of insurance, but there are others.
1) Dividends
Depending on the insurance company you choose, you may receive dividends while you own a policy with the company. These companies are called mutual insurance companies, and if you have a policy with a mutual company, you are eligible to receive dividends depending on the type of policy you already have, and the amount of financial surplus of the company annually. However, you are not guaranteed to receive dividends each year, nor is there a guarantee on the amount you receive.
According to the company that you have a variety of options for the use of dividends. You can save money to pay future premiums, it is used to increase the value of your policy, leaving it to raise deposit interest, or you can simply take the cash to spend as you like. However, note that even if the dividends are not taxable, unless the total dividends you receive are more than the total amount that you paid premiums, interest on the dividends you earn if you leave on deposit is taxable.
2) Borrowing from your life insurance
If your life insurance policy has a cash value, you may be able to borrow against it. One of the biggest advantages of borrowing from a policy rather than simply getting a loan is that you will pay interest much lower.
However, there is a reason why you should be aware of. If you borrow against your policy and not to repay, your beneficiaries receive less money if they so request, to borrow from your life insurance can be counter-productive. Borrowing against the value of your policy should only be done if you have a real emergency financial and money should be returned to your policy as soon as possible to ensure that your beneficiaries receive the full value of the politics.
Note that you must have the whole life, rather than term life insurance, to be able to borrow against it. In addition, there is a "waiting period" between procurement policies and to be eligible to borrow against it. Most importantly, if your outstanding loan, plus cash interest is greater than the value of your policy, the policy is finished and that your coverage ends, it is better to be cautious about borrowing.
1) Dividends
Depending on the insurance company you choose, you may receive dividends while you own a policy with the company. These companies are called mutual insurance companies, and if you have a policy with a mutual company, you are eligible to receive dividends depending on the type of policy you already have, and the amount of financial surplus of the company annually. However, you are not guaranteed to receive dividends each year, nor is there a guarantee on the amount you receive.
According to the company that you have a variety of options for the use of dividends. You can save money to pay future premiums, it is used to increase the value of your policy, leaving it to raise deposit interest, or you can simply take the cash to spend as you like. However, note that even if the dividends are not taxable, unless the total dividends you receive are more than the total amount that you paid premiums, interest on the dividends you earn if you leave on deposit is taxable.
2) Borrowing from your life insurance
If your life insurance policy has a cash value, you may be able to borrow against it. One of the biggest advantages of borrowing from a policy rather than simply getting a loan is that you will pay interest much lower.
However, there is a reason why you should be aware of. If you borrow against your policy and not to repay, your beneficiaries receive less money if they so request, to borrow from your life insurance can be counter-productive. Borrowing against the value of your policy should only be done if you have a real emergency financial and money should be returned to your policy as soon as possible to ensure that your beneficiaries receive the full value of the politics.
Note that you must have the whole life, rather than term life insurance, to be able to borrow against it. In addition, there is a "waiting period" between procurement policies and to be eligible to borrow against it. Most importantly, if your outstanding loan, plus cash interest is greater than the value of your policy, the policy is finished and that your coverage ends, it is better to be cautious about borrowing.
1 comments:
I agree that young people don't want to think of death and about life insurance policy at that stage of their life. But life insurance is really beneficial as I have read that its better to make out this policy early to have the benefit of cheap policy. Also there are several benefits of having a life insurance, few of which you have posted. Thanks.
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