Life insurance is a way in which you can prepare for your demise even before it happens and care for your loved ones afterward. There are many other reasons why you should pay for life insurance:
Financial protection for dependents
Life insurance is a way of preparing for the unknown future and ensuring financial stability for your loved ones in cases of sudden death. Owning life insurance ensures that your dependents can continue to pay for their cost of living (rent, food, and mortgage).
Life insurance is mainly beneficial to your dependents, but depending on the policy you buy, some life insurance policies also benefit you in cases of terminal, chronic or critical illness. These life insurance policies ensure financial provision for you in the event of any of the above-listed instances.
Payment of outstanding debts
Some life insurance policies also help you to pay any existing debts as at the time of your demise. This prevents your family and loved ones from being liable for such debts and protects them from financial uncertainty.
With the right life insurance policy, you can engage in long-term savings for your family and build your finances. This wealth can help your dependents go to school, develop businesses or own homes after your death.
Life insurance policies help you to save on tax payments. The premium you pay on life insurance is exempt from taxation. The cover received by your dependents is also tax-free as well thereby helping you to reduce your tax payments.
Accumulation of cash value
Purchasing a life insurance policy and continued payment of premiums ensures growth in the cash value available to you over the years. Cash value is usually available with permanent life insurance. You can use your available cash value to obtain bank loans, pay your insurance policy premium and to supplement your retirement income.
Life insurance policies are very flexible and as such affordable. You can choose a policy plan and customize it at affordable rates.