3 Reasons to Get Whole Life Insurance
Are you considering getting life insurance?
While you may think you should wait until you’re older to invest in life insurance, you should start thinking about it when you’re younger, even in your 20s. It’s especially important if other people depend on you financially.
It’s essential to understand the different types of life insurance, such as whole life insurance.
Why should you choose this type, and how can it benefit you? Read on to learn more.
What Is Whole Life Insurance?
Whole life insurance is the most permanent type of life insurance. This means that if you pay your premiums, your coverage will never expire.
The Term life insurance, on the other hand, expires when your term expires. This means that you’ll have to renew it later on, which could increase the price of your premiums and disqualify you if you’ve developed certain diseases or illnesses.
Besides this permanence, there are many other benefits to whole life insurance, which are explored below.
1. Tax-Advantaged Benefits
Whole life insurance is tax-free, and it is tax-deferred. This means that the cash value of your life insurance will continue to grow throughout your life much quicker because no taxes will be taken out of it.
You’re able to borrow money from this cash value if you need to, which can be helpful in emergency situations. Your family will be able to access the cash value quicker, too, because of the tax-free benefits, unlike with other assets and properties.
Still confused about what is cash value, and how does it relate to life insurance? Click to learn more.
2. Fixed Cost and Benefits
Your premiums will never change, no matter what happens throughout your entire life. As long as you pay your premiums, your life insurance is guaranteed.
The price may seem a bit expensive initially, especially when you have a long life to look forward to. But as life goes on, the advantages will clearly outweigh the disadvantages, and you can use the life insurance when you go into retirement.
This also means that the benefits are fixed, so no matter what, your family will receive the sum of money when you pass away.
3. Give to Charity
You may not be aware that you can give to charity with insurance use. Charitable giving will provide you with tax benefits now, giving you a tax income deduction. This is especially useful if you made a lot of money in a specific year.
You can also leave the money in your account to a non-profit when you pass away. However, you want to make sure to work with a tax advisor, as tax laws are constantly changing.
Take the Measures to Protect You and Your Family
There are many more benefits to getting whole life insurance than you may think. If you’re thinking this could be right for you, start doing some research to see what policies could work for you and your family.
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