Financial Benefits of an Insurance Policy

Richard Parker  |

Almost everyone appreciates the fact that they need an insurance policy. However, the majority procrastinate until an event forces them to purchase the cover.

However, you don't have to let it get to this point. The benefits accruing from the policy are way too much to ignore.

Don't wait until it's late to purchase the cover. Have a list of life insurance companies for evaluation. Choose the best policy provider who offers the best policy.

These are some benefits accruing from this policy.

  • Access to Cash
  • Financial Security for Your Family
  • Protected Insurability
  • Flexibility

After accumulation, the insurance cash value is accessible for withdrawal. You may do this through a withdrawal or policy loan to finance your financial needs.

Other than whole-life policy, other life insurance policies will have a maturity date. If you die before this date, the cash will be given to your beneficiary. Otherwise, if you live on past this date, you can easily withdraw the cash.

Life insurance policies allow for the long-term accumulation of cash value. There're different ways in which you can access these funds. You may convert the policy to annuity or cash it out.

You may decide to spend some portion of this money and keep the rest. You may also choose not to touch the policy so as to protect your family.

So long as you pay the insurance premiums, permanent life policy offers cover for your entire life. It doesn't matter whether your health, personal or financial situation changes.

That's why it's better to purchase the policy when the premiums are still low. With these many benefits, a permanent insurance policy will be a great addition to your balance sheet. It'll be the foundation for your own financial security.

Unlike other investments, you can access your cash value without restrictions. For instance, there will be no rules on the specific minimum amount to contribute. You'll also not get fines and penalties as it is common in most tax-favoured investments.

How Much Insurance Do You Need?

Well, everyone is different. Only buy the policy which you can afford. Further, the insurance cost is dependent on a number of variables. Such include your health, age and gender.

Older people, men and sick people are more costly to ensure that the others.

If you are buying a life insurance policy, consider getting one that is seven to ten times your annual earnings.

You may also seek help from financial experts who are aware of your financial conditions. Take your time till you get it right.

Where Do You Buy an Insurance Cover?

The insurance industry is quite interesting. Some firms will be better than others at offering a given service. How then do you make the best decision?

Well, consider talking to a financial advisor who is indifferent about either company. Don't take the captive agent words as the gospel truth.

Remember, these agents work for a given company. They get their earnings by driving clients to their business.

DISCLOSURE: N/A


The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

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