Apart from catering to the financial needs of your loved ones, life insurance can do a lot more that you may not even know. Here’s a look at some of the most effective ways, life insurance can assist you:
Creation of another source of income
You will have to encounter large expenses such as paying for child’s college, clearing off a mortgage, etc. – as you go through life. You may even have to supplement your retirement income which forms another financial obligation. A lot of Permanent Life Insurance policies may accrue cash value which you can utilize the way you want to.
Access to money if you fall sick
The life span of people has increased compared to the past, thus it’s vital that you have access to some extra money that you may need in case you get a terminal illness. Various policies of permanent life insurance offer an additional provision known as a rider that allows individuals to access their death benefit while they are still alive.
Protection to your business
Business owners have to protect their employees, business and family. Permanent life insurance assists in continuing your business in case an important employee or business partner dies. It also helps in facilitating the exchange of ownership of business in case you or your partner retires or dies, all the while ensuring that the business capital will not deplete.
Lowered tax payment
One cannot just get rid of taxes and nobody likes paying more in taxes than they are required to. The tax benefits provided by both permanent and term insurance policies offers the beneficiaries with a death benefit that is tax-free.