Life insurance policies make up a significant portion of people’s financial planning these days and always are invested in for the security of one’s family in the long term.
What exactly does life insurance do and what does it provide security against and why should you consider all aspects before you choose a particular life insurance policy?
Here is what life insurance covers you from:
- Paying Final Costs
Life Insurance policies help you cover for your final expenses and make sure you are prepared in case the worst happens and your family cannot take the burden of the funeral expenses.
- Paying off mortgages or personal debts
While buying one’s home is a huge investment and a personal milestone crossed for most it can also leave you with a lot of debt hanging around your neck. There are particular life insurance policies like decreasing term life insurance that is fabricated to cover you and your loved ones from outstanding mortgages or loans you had drawn during your lifetime.
Life insurances can pay out huge amounts of a lump sum as an inheritance. The payout goes to the beneficiary of your choice elected by you and can be used by him or her anyway they please.
- Inheritance Tax
The lump sum paid by your insurance forms part of your estate and your heir may have to pay a good amount as inheritance tax in case the valuation of your estate is significantly high. However, you can save a lot on your taxes if you put your life insurance in a trust which doesn’t make the life insurance a part of your estate anymore and your heirs receive clean tax-free money from the trust which they can use as they please.
- Donations to Charity
Life insurance policies allow you to select a charity of your choice making sure you fulfill your humanitarian goals.
Read all policy-related terms and conditions carefully.
We would recommend you to talk to one of our advisers for life insurance quotes.
Any quote that your adviser provides you with will take into account your circumstances, your medical history, as well as your budget!
Call 011-3733-4610 – Monday to Thursday from 11.00 to 19.00 and on Friday between 11.00 and 16.00