Whenever it comes to long-term investments as well as financial protection, the first thing that comes to mind is a life insurance policy. Proceeds from such a policy can be very useful in paying off all your financial expenses, outstanding debts, or other daily expenses. However, others might have an opinion that insurance might not be a good investment in the long run.
Now, this brings up a question: is spending money on life insurance really worthwhile? Well, as per Calgary’s one of the most sought-after insurance experts, Mr. Rajdeep Dhaliwal, life insurance can actually turn out to be a good investment for a vast majority of individuals depending upon the type of life insurance companies in Calgary for the following reasons:
- Deferred Tax Growth:
Life insurance policies allow investors to have their wealth grow on a deferred basis. This simply implies that you need not pay any taxes on any interest, dividends, or cash benefits received in the form of revenue from this investment as they are tax-free.
- Long-Term Coverage:
The fact that people don’t lose their coverage after a predetermined period of time is another acknowledged advantage of perpetual life insurance. While permanent insurance may provide lifetime coverage, a term policy expires when you reach the end of the term, which for many policyholders is in their 60s. This benefit can be appealing to you if you foresee having dependents who will require your financial support for a longer period of time than a conventional term policy (such as a child with a disability).
- Borrowing Option:
A permanent life insurance policy’s cash value might be used as collateral for a loan if you need money to buy a house or pay for education. However, only reputed life insurance companies in Calgary may provide you with this option.
- Death Benefit:
Investing in life insurance provides your family and you with a secure future, which implies that in case of your death due to any unforeseen event like an accident or fatal illness, your family would get the entire sum assured along with the bonus to the bereaved family.
- Additional Benefits:
One most likely can receive anywhere between 20% and 95% of the monetary benefit from his policy before he dies only if he develops a specified severe health condition like cardiac arrest, cancer, or renal failure. The primary benefit of such a premature claim is that it can significantly help you to pay your medical bills and probably help you enjoy the last few months of your life.
Answers To Other Frequently Asked Questions About Life Insurance:
Which is preferable, whole life or term life insurance?
The answer actually depends on your goals: Both plans give a death benefit, but whole life insurance might offer more advantages and greater flexibility than term policies; additionally, the premiums frequently remain the same over the policy’s entire term. While term life insurance rates remain steady throughout the policy’s term, you should anticipate spending much more for your next policy once it expires. Term life insurance policies offer fewer benefits but are also less expensive.
What level of life insurance do I require?
The amount of life insurance you require may be determined using some broad guidelines. Typically, individuals want to leave their family with enough of a death benefit to offset the loss of income and other costs, such as a mortgage, especially while their children are still living at home.
What choices are there for senior life insurance?
Depending on your needs, yes. Because life insurance costs tend to increase with age, many seniors purchase policies that just cover the cost of their funerals in order to save their family’s financial hardship. Additionally, life insurance can be a tax-efficient method to leave money to heirs when employed in estate planning procedures.