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 this case, you will be paying a specific amount of money at the end of every month for agreed period of time. Below are some of the benefits of life insurance policy. We have life cover as the first benefit of life insurance. It is considered as the major advantage of life insurance policy. This is the amount of money that your insurance company pays to you or your nominee on your absence. As a result, the insurance firm will ensure that your loved ones will benefit from your cover even if you are absent. A person that you appoint during the time that you are purchasing life insurance cover to take the benefits in your absence is referred to as a nominee. The nominee will ensure that your children do not suffer in case anything happens to you. Make sure that you purchase a life cover that will satisfy your children effectively. You are advised to buy a life insurance that is even ten times your income. Another advantage of life insurance policy is that is a long term saving. This is so because you will be systematically saving money with the firm at the end of every month. This policy is beneficial because by the time you will be retiring you will have enough benefits for your plans. Besides, you would have achieved your objective of saving money maybe for your son’s wedding or to start up a business enterprise. To add on that you will also get double benefits protection as well as savings.
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Apart from that we also have life stage specific planning. 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. Most common cases are; 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.
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The last benefit of life insurance is the tax advantage. There is a provision that you can be exempted from paying tax if you are saving your money with this insurance firms. Like you are not going to be taxed from your premiums which you are going to pay every month. You also find that as your money grows you are also going to be entitled to earning benefits. Besides, you will be able to end your cover free of charge.