Many individuals try to ensure that they take care of their health so that they may be able to live longer and take care of their families for a longer time and also be able to reach their lifelong achievements. Due to the fact that we know that death is inevitable and at some point it is important to have some kind of backup in the form of life insurance which will ensure that your family will be well taken care of even in your absence. In this chapter, we are going to look at the various benefits of life insurance and why it is important for individuals to ensure that they have one. Infusion of cash is one of the great advantages of life insurance and this is because in the event of your death your family is able to be financially stable and be able to continue handling their finances even in your absence. It is quite advantageous when it comes to death benefits and this is because in the event of your death the beneficiary will not be taxed the amount of money that they will receive and therefore they will be able to receive the full beneficiary amount tax-free.
Life insurance is also quite beneficial and this is because the money that is received by the beneficiary is able to assist them to take care of paying their final costs which may include the funeral expenses and any other extra expenses that may occur. Another advantage of the life insurance is the fact that it is seen as a tool for forced saving and this is because an individual will only be compensated if their premiums are up to date and therefore one cannot afford to default on the premium payments.
The amount of money that is normally received by the beneficiary can be used to pay off debts that may have accrued and also can be used as a form of replacing the income that used to be generated by the insurer. In some instances the insurer decides that the beneficiary of his insurance scheme will be charitable organizations and this is a way that he may be able to give back to the community and also boost the economy at the same time. Another importance of life insurance is the fact that they are able to ensure continuity in terms of repayment of the mortgage scheme that the family may be going through and also in terms of continuity of the education of the children.