Do you know what life insurance is, but you don’t know what are the benefits of hiring it ?
Knowing the benefits that any type of insurance offers us can help us decide quickly and safely whether to take out our policy.
Next, we are going to explain to you what are the main benefits of taking out life insurance, so that you can assess them, weigh them and decide to acquire one.
We are here to help you, so if you have any questions or concerns, do not hesitate to contact us!
Family financial security
Without a doubt, this is one of the main benefits of life insurance.
Our family is our strongest point and at the same times our Achilles heel. Your happiness and well-being are our main goals. And knowing that if we are not, or cannot continue to take care of it, they will be covered provides great peace of mind.
By contracting your policy, you can guarantee a better economic future for your family, since this way you are guaranteeing their well-being and safety in the event that you are absent.
In almost all families in our country, there is some associated debt. Be it a mortgage or a loan. If income is lost, paying off debts is very difficult and can become a real headache. For this reason, life insurance offers coverage in the event of death or suffering a disability that does not allow us to continue carrying out our work.
With the compensation paid by the insurer, the debts can be met. Or at least reduce the amounts of these if the insured capital contracted does not cover the entirety. Thus, allowing the rest of the monthly income received in the family nucleus to be fully dedicated to maintaining the same lifestyle that was used.
Coverage for disability or illness
But, in addition, the benefits of taking out life insurance go beyond covering and protecting our Family Insurance Agent in Brampton. Since with the hiring we will be protecting ourselves, the policyholder, in the event of suffering a disability or illness that is specified in our policy. If it were the case, the coverage would go through dealing with the related expenses that could arise if necessary. As well as the payment of the compensation that is contracted.
Neither liens nor taxes
Another benefit of life insurance to take into account is this point.
In the event of the death of the insured, the payment of the capital by the insurer as compensation is not subject to or subject to Inheritance and Gift Tax, nor is it subject to personal income tax.
This means that inheritance and life insurance are completely independent. Therefore, even if certain debts were associated with the inheritance, under no circumstances could anyone seize the amount of the life insurance compensation. And, of course, no inheritance tax would apply to you either. Thus remaining entirely in favor of the designated beneficiaries.
Designation of beneficiaries
Among the benefits of taking out life insurance, it should be noted that it is the policyholder who decides who or who he or she wants to designate as beneficiaries.
In this way, the compensation is not subject to inheritance or legitimate and, therefore, the beneficiaries will receive the full compensation amount without prejudice to the fact that the family or successors can claim anything.
Life insurance for mortgage amortization
When we acquire a mortgage we are concerned about the term of years to come in which we will have to face the monthly payments. By contracting a life insurance in which the mortgage payment is covered in the event of disability or death, we will be guaranteeing that if necessary the amount will be used to cover the pending amount of the operation. In addition, another benefit is that, when the annual income statement is presented, it will be possible to deduct the cost of the policy in the section on real estate capital performance.
A great advantage of life insurance, for the self-employed, is that they can benefit from a deduction of 500 Euros in the premiums they have paid annually for their policy.
The life insurance are very flexible and fully customizable to the needs of the policyholder throughout his life.
In each stage we go through, our needs change and change. It is not the same to be alone, without a family dependent on us, than to be a parent with dependent children. For this reason, the flexibility of our policies allows us to adapt the coverage as time goes by. In order to be able to have those that are really necessary at all times.