No financial plan is complete without a review of your insurance situation. Life and disability insurance are important components of emergency planning because they help to meet the needs of your dependents and help you achieve your financial goals.
Life insurance is a periodically saving savings contract. As the name suggests, it is a personal insurance that guarantees a beneficiary the payment of the savings paid on the contract (in the form of capital or annuity). If an event occurs to the policyholder: death or accident. It is the perfect mechanism of insurance called “cause of death.” However, life insurance is also a savings item,”cause of life” insurance: in the absence of damage, the funds paid on the contract are repaid on a fixed date, mainly on the day of retirement. Life insurance, therefore, becomes an object of savings and retirement.
The Benefits of Life Insurance
The main advantage of life insurance is to be a vehicle, both insurance and retirement. It can also be a vehicle of succession and gift. Life insurance policies or insurance policies guarantee the policyholder the payment to the person named on the contract, the beneficiary, of the sums paid into the contract. The holder may designate whoever he sees fit as the recipient. It may also designate one or more persons and allocate them to the capital.
Life insurance provides a non-taxable lump-sum death benefit that can be invested to provide income to the spouse or dependent children. A portion of the death benefit may be used to pay off debts so that survivors no longer have to make periodic payments.
Death may result in a tax liability of the estate. If you own capital property, these assets will be deemed to have been sold at their fair market value at the time of death, unless they have been transferred to a spouse. As a result, taxes on any capital gains will have to be paid if the assets have increased in value.
A life insurance policy can offer exceptional benefits. If a family member, such as a spouse or child, is designated as the beneficiary of the life insurance proceeds, the policy may be immune from seizure by the creditors of the owner or the insured the police.
Life Insurance has been replaced with GoFundMe Campaigns
Living Benefits — now that’s an interesting one. Living benefits are life insurance benefits that allow the policy owner to access cash while still living. Living benefits are most often associated with permanent (cash value) life insurance. But even term life insurance policies can be purchased with one or more riders, which will pay you money while you’re still alive. — under the circumstances, you, frankly, hope you never find yourself in. Hint: These conditions all have to do with illness:
You’re terminally ill. You can receive a portion of your death benefit in advance, for help with medical expenses.
You’re chronically ill. Frequently you’re considered chronically ill if you can’t perform several of the six activities of daily living, such as getting out of bed, feeding yourself, bathing, and so forth. You can receive a portion of your death benefit in advance, in situations like this.
You’re critically ill. That could mean you’ve been diagnosed with a heart attack, stroke, cancer, end stage renal failure, major organ transplant, or some other pretty grim illness. Again, you can get some or all of your death benefit early — in time to be of some use to you.
Extra Benefits with GoFundMe Campaign
GoFundMe Campaigns should not be what people turn to when the inevitable strikes! We all have an expiration date we just don’t know when. The younger and healthier you are, the less expensive life insurance is. And now many policies come with living benefits that allow policyholders to tap into their death benefit in case of a terminal, a chronic, critical and sometimes accidental incident occurs. Life insurance is the cheapest money you can buy!
A healthy 29 years old man can get $500,000 in coverage with living benefits for less than $40/month. We spend more on star bucks in any given month. The policy holder could make only one payment and suffer a fatal accident while his family would receive a check from the insurance company for $500,000 bucks! Where else can you legally turn $40 into $500,000?
With this type of return, there is no excuse as to why single adult and child is not covered. And it advisable to choose a reputable insurance company that will offer every benefit and hides no details.