Life insurance is a type of insurance that most people get swayed into not doing because of the amount of money you have to pay for it and the way in which to get your benefits. It is not like health insurance where you can instantly use it when you get sick or if you feel that there is an unnatural feeling that you have in your body. It is not like liability insurance wherein you have a buffer just in case all your other insurances are fully used. Life insurance is the type that is not for yourself but for your family.
What are the advantages of getting life insurance?
Your family will receive financial assistance
Depending on the type of plan that you got, your family can get thousands of dollars to help them start over after the burden of you leaving. It is hard enough that you left them in an untimely manner. This scenario is more difficult if you are the only one working for your family. Your husband or wife will have to scrape for ways in order to pay for the monthly mortgage, insurances, and other expenses. Leaving them should not be a burden to them financially. To help them, you should get good life insurance.
Favored tax treatment
This depends on the country that you belong to. Some countries provide tax benefits for those who get life insurance. Death benefits are tax-free for some parts of the world. Some death benefits that are owned properly are estate tax-free. You should review your local laws as well as the provisions on your term life insurance to know the actual tax exemptions of your package.
Critical illness coverage
A term life insurance usually has a critical illness provision. What does this mean? It means that if you get a condition under the Critical Illness coverage, you are also covered. The amount of money stated in the provision will be given to you completely. During these times, your family does not have to look for money to pay for the hospital because you already have the amount, thanks to life insurance.