Have you ever thought about life insurance for you or your family? Many of us do not realize the importance of having insurance. When our loved ones are healthy and receive a stable income, we simply hope that this will continue in the future.
And if you are the sole breadwinner of the family?
Would you not want your family to remain financially secure if anything happens to you? There are no guarantees that tomorrow our life will be the same as today, and therefore, for the financial protection of our loved ones we need life insurance. For the proper Life insurances this is the best deal now.
One way to choose the right insurance conditions is to evaluate your financial situation. How much do you earn per year? Do you pay a mortgage or other large loans? How long do you need life insurance? What fixed costs do you have? How soon will your children begin to support themselves? All these circumstances should be considered when choosing the appropriate type of insurance.
- Then you will need to choose the main beneficiary of the insurance, as well as the additional beneficiary in case of death of the main one. Do not leave the “beneficiary” column blank, otherwise the insurance amount will be transferred to your property and your family will not receive it. If for some reason you want to change the beneficiaries of insurance, you can do it at any time. After significant changes in your life, marriage, divorce, having a baby, buying a home, you need to re-decide what type of insurance you need.
- Death insurance is paid to the beneficiary upon the death of the insured person, provided that all payments have been made on time. If for some reason the insured missed the last few payments, then, as a rule, the insurance company still pays insurance minus arrears. The beneficiary has the right to choose the full or partial payment of the insurance amount.
Payments on the death of the insured not only protect your income. In addition, they are not taxed, with the exception of the situation when you receive part of the amount and leave the other part in the interest account. Only accrued interest is taxable, but not the principal amount of death benefits.
Life Insurance Benefits for a Business Owner
Do you have your own company with several employees who may be interested in life insurance? The cost of group insurance is deducted from taxable income, provided that the company is not the beneficiary. After acquiring a group policy, a company can deduct insurance premiums for the first $ 50,000 of insurance amount for each employee from taxes. This is beneficial for both parties: the company receives tax deductions, and employees receive lower costs compared to self-insurance. In this case, the company enters into a basic contract with an insurance company, and each employee receives an insurance policy.