Importance of Life Insurance:
Life Insurance pays out a sum of money either on the death of the insured person or after a certain period of time:
It’s a long term financial goal since it helps you create a substantial financial corpus for your long term financial goals by helping save money with the protection of life cover. Also it protects the child’s future. It ensures your child have the best possible future even when you are not around. As well as, it provides retirement planning by helping to invest and build a financial corpus for your retirement so that you can live your post-retirement life comfortably
4 Major Types of Life Insurance
Term Life Insurance:
- Good for a set amount of time.
- Simple, inexpensive, easy to understand.
- Requires Premiums based on the person’s age, overall health, and life expectancy.
Whole Life Insurance:
- Covers the insured individual for their entire life.
- Cash with drawl or borrowing can be performed.
- Predetermined amount is given to the policy holder’s family when dead.
Universal Life Insurance:
- Flexible Premiums.
- Increasing Death benefits.
- Tax-deferred investment opportunity.
- Low-cost protection of Term Life Insurance with the Savings element of Whole Life Insurance.
Variable Life Insurance:
- Permanent Life Insurance.
- Tax benefits for policy holders.
- Policy can be used for financial needs.
- Cash is invested in several sub-accounts.
What are the Benefits of Life Insurance?
- Supplements Retirement savings:
If you purchase a whole, universal, or variablelife insurance policy, it can accumulate cash value in addition to providing death benefits. As the cash value builds up over time, you can use it to cover expenses, such as buying a car or making a down payment on a home. You can also tap into it if you need to during your retirement years. - Your dependents won’t worry about life:
People shouldn’t have to worry about their living expenses or other major costs. Your insurance policy could cover the cost of your children’s college education, and they won’t need to take out student loans. - Payouts are tax free:
If you have a life insurance policy and die while your coverage is in effect, your beneficiaries will receive a lump sum death benefit. Life insurance payouts aren’t considered income for tax purposes, and your beneficiaries don’t have to report the money when they file their tax returns. - Covers final expenses:
If you have a life insurance policy, your beneficiaries can use the money to pay for your burial expenses without having to dip into their own savings or use credit. Some insurers offer final expense policies. These policies have low coverage amounts and relatively inexpensive monthly premiums. - Covers chronic and terminal illnesses.
An accelerated benefits rider allows you to access some or all of your death benefit under certain circumstances. Under some policies, for example, if you are diagnosed with a terminal illness and are expected to live less than 12 months, you can use your death benefit while you’re still living to pay for your care or other expenses.
Get insured before it’s Too Late!
If you do not have Life Insurnace , don’t delay. And if you would like to learn more about Life Insurance book a call with Ali Arayassi, call +961 71 135 324 or send an email to info@aliarayssi.com