6 benefits of taking out life insurance

Life insurance should be in the plans of every person whose values are the health and well-being of themselves and their family. With the help of life insurance, everyone can take care of their family in the most affordable and best possible way. There are many options in the insurance market and for the sake of our loved ones’ future, we should take advantage of at least one of them. 

What does life insurance cover?

In its most general sense, life insurance is designed to provide good financial protection for the insured’s family in the event of death, accident or permanent disability. Coverage may also include a terminal illness benefit. In addition, this type of insurance may provide an opportunity to accumulate savings and investments. 

6 benefits of taking out life insurance

The main advantage of life insurance is that it provides peace of mind to the insured’s family. It would be hard to find a greater advantage than this, but there are a few others that are good to consider if you are hesitant about taking out insurance.

Financial security

Life insurance provides financial security for the insured’s family by providing a substantial sum in the event of death or permanent disability. This amount can cover funeral expenses, debt repayment, children’s education and daily needs. In this way, insurance reduces financial stress and provides stability and support during difficult times. This is especially important for families who rely on one person’s income to maintain a standard of living.

Savings-based life insurance

Savings-based life insurance is a combination of life insurance protection and a true savings opportunity. Thanks to the opportunity it provides, the insured can accumulate capital. These funds can be used for retirement or other needs. In addition, this type of insurance often includes investment options that can increase the value of the funds saved. This combination provides the dual benefit of protection and financial stability for the future.

Tax benefits

Taking out life insurance can provide significant tax benefits. It can reduce the annual taxable amount by the premiums paid, up to 10% of it. Take for example a tax base of 10,000 lv and premiums of 2,000 lv. In this case, the basic would be reduced to 8,000 lv. At the end of the policy a final tax is due on the insurance payment received: 10% for up to 15 years and 7% for over 15 years.

Peace of mind

The peace of mind that life insurance creates is extremely important for every family and the insured within it. Knowing that loved ones will be financially protected in the event of unforeseen events reduces stress and anxiety. This security allows individuals to focus on their daily obligations and long-term goals without worrying about the financial stability of their loved ones. 

Diversification of savings

Some types of life insurance provide the opportunity to diversify savings. This means that part of the premiums can be invested in different financial instruments, increasing the possibility of higher returns. Diversification reduces risk and provides more stable financial results while providing protection and security for the insured’s family.

Planning the future

Savings and investment life insurance can provide protection in difficult times, but also help with retirement or children’s education. They are long-term products, usually with a 10-20 year term, that encourage savings discipline through regular premium payments. While terminating a policy early can result in losses, these insurances facilitate systematic saving for people who find it difficult to set aside money on their own. Thus, they offer a structured solution for long-term financial planning.

How to choose where to take out life insurance?

Choosing where to take out life insurance is not easy. The internet and TV are full of offers, deals and many other options that insurers are using to try to attract more customers. It’s important for everyone to do their research and trust a company with a good reputation and extensive experience. Looking at different offers, comparing terms and coverages as well as premiums is essential to choosing an insurance company. 

 

At Netins Insurance Brokers we are ready to offer advice and expertise to resolve this pressing issue, offering experience and an unrivalled reputation in return. 

 

We look forward to welcoming you to our office, and you can book a discovery appointment with one of our consultants through our website. We will be happy to give you the best guidance for your insurance journey!