Making sure your loved ones are well taken care of when you are not there is one of the biggest concerns in life. One of the best ways to ease your worries and provide peace of mind to your family is to get life insurance. If you reside in Australia, Move Bank provide life insurance that you can use to benefit your loved ones in the long and even short term. If you are not completely sure about the investment, then you might want to know all about the uses and benefits of having life insurance.
What are the Advantages of Life Insurance?
Having life insurance benefits you and your family in numerous ways. They include the following:
• Protects Your Family: Having a life insurance policy can protect your family, specifically with the death benefit it provides. If you were to pass away without any life insurance, your family may be left struggling to pick up the pieces, not only emotionally but financially as well. In many instances, the family is left to pay for funeral and burial expenses, the mortgage and various other bills. Life insurance can cover all of those costs and more.
• Removes Worries: Life insurance can give your family peace of mind and eliminate worries. Losing their loved one if you should pass away prematurely is stressful enough, but the life insurance can remove worries about what may happen in the future.
• Offers Cash Value: If you opt for a permanent life insurance policy instead of term, you are eventually eligible for cash value life insurance. This means that the policy can grow over a period of time. Cash value can help you in the future by allowing you to buy certain necessities such as a home. It can also allow you to invest in real estate, pay off your debt or even use it for passive income.
• Tax-Free: Another great benefit of life insurance is that it is non-taxable. That means you can watch its cash value increase over time and don’t have to pay any taxes toward that financial growth. You are not even penalized for withdrawing from your policy as long as the amount isn’t greater than your premium.
• Flexibility: Life insurance policies are also flexible and offer a variety of policies, benefits and durations.
• Inexpensive: Many life insurance options are fairly cheap, which means that you can make the most of them in the long term. The specific price of your life insurance depends on what you are interested in with your policy, such as whether you have riders connected to it, if you prefer term or permanent or if you get a medical exam prior to buying it.
Uses for Life Insurance Benefits
There are great uses for life insurance benefits. They include the following:
• Paying Final Costs: Life insurance benefits can pay for funeral, burial or cremation expenses and even the remainder of your mortgage.
• Paying off Debt: You can use your life insurance benefits to pay off outstanding debts.
• Pay for College Expenses: You can pay your child’s college expenses with life insurance benefits. This includes tuition, room and board, books and more.
• Inheritance: Your life insurance benefits can be used as inheritances for your beneficiaries in the event of your death.
• Paying Federal or State Estate Taxes: Your life insurance benefits can be used by your beneficiaries to pay off federal or state estate taxes.
• Charitable Contributions: A life insurance policy can even be used toward contributions to your favorite charity.