Life insurance, while devised mainly as a means of ensuring financial security for one’s kin upon the event of one’s death, can also fulfill a number of other requirements. They seem pretty straight-forward: insurance companies receive premiums, and upon the death of an individual, pay the death benefit to the beneficiaries. However, a death benefit is not the only thing life insurance is limited to; it can provide a number of other assistance. Here are a few of the things a life insurance plan can help you with:
- A life insurance can help pay for long-term care expenses either through the financial resources insurance allows, or through insurance plans devised primarily for the purpose.
- A life insurance can also help pay for your child’s education, again, through the added resources, or plans designed solely for educational purposes.
- In addition, an insurance plan allows you to minimize your taxes during retirement. Individuals can invest in a plan that allows for tax-free money during retirement, as well as work out a suitable strategy for withdrawals.
- You can also buy insurance for your child, as well as the remaining members of your family.
- The premiums you pay can also be waived; this will be of particular aid if you were to become disabled. As per the name, premiums are eliminated for those with particular injuries or illnesses.
- In the case of disability, there are a number of plans that shell out insurance money designed solely for those with particular illnesses, as mentioned previously. This can act as a safety net, providing some security in case of an unforeseen event.
- Insurance can also be a cushion in case of a sagging stock market: instead of selling stocks, one can instead opt to take money out of insurance.
Life insurance policies can, therefore, be used for multitudinous purposes, and an extensive look into the benefits could mean added security and stability for you, as well as your family.