A life settlement is known as a life insurance policy. While many have bought one, some are still doubtful as to whether or not they need to purchase one. While it may cost you more on the pocket, this also means that you have an added blanket of protection, for your heirs and family members, when the time comes for you to say goodbye.
Nothing in this life is ever constant, and every human being has a designated time for his or her life to end. When this happens, you’ll want to know that the family you left behind is financially secure, to say the least.
That said, here are some of the benefits that you can gain from engaging in a life settlement:
It Provides An Umbrella Of Protection
In essence, a life insurance policy isn’t there to benefit you. Instead, it’s for your family, or your beneficiaries, that you leave behind.
Upon your death, your family members may have to go through numerous expenses that are now going to be difficult for them to pay, if you’re not around anymore. The same especially holds if you’re the only breadwinner of the family. If you still have minor children who are your dependents, you wouldn’t want even their education to suffer, should anything happen towards you. Hence, a life insurance policy stands as one of the most effective blankets of protection that you can give to your family. However, it is very important that you compare life insurance quotes before purchasing one.
Here’s access to different testimonies from life settlement experts who can gladly be of help to start your search for the best life settlement.
It Enjoys A Favorable Tax Treatment
When a person dies, there are some tax exemptions that the deceased, and the family he has left behind, may enjoy. Be sure, however, to check with your local revenue or tax code, as to what these tax exemptions are, as they can vary. However, one of the most common examples is the favorable tax treatment given towards life insurance policies. For instance:
- The beneficiary generally enjoys tax-free death benefits that stem from a life insurance policy
- Loans taken out for life insurance policies are given a free income taxation treatment
- The beneficiary also generally enjoys tax-free estate benefits from a life insurance policy
This tax benefit, on top of other financial bonuses from a life insurance policy, should be convincing enough for you to gladly grab a policy today. Remember, with technology and with better financing options, it’s now easier for you to apply for insurance policies, and with a better value of a life insurance policy as well.
It Takes Away Unnecessary Worries
One of the biggest worries in life as a parent or a young adult is financial stability. Should you die prematurely, you never know what’s going to happen to your family. With a life insurance policy, however, all unnecessary worries are taken away.
Instead, you can focus on enjoying life since you’re already ensured that should anything happen to you, your family is going to be in good hands. Albeit costly, there’s no replacement for the confidence and satisfaction that you’re going to feel, knowing that your family stands to stay secure, come what may. This is especially important for service members of the Army, for obvious reasons. Bear in mind that there are conditions that can lead to denied SGLI claims, so make sure you are represented by a good attorney when stating your case
It Offers Flexibility In Terms
Of all the insurance products that are available in the market, one of the most flexible in terms is a life insurance policy. Hence, you can continuously adjust your policy, depending on your needs, as the holder of the life insurance settlement.
In addition, should you find the need to decrease the premium, you can also do so at will, and in effect, extend the period of payment, too. Whatever situation that comes along in your life that will bring you to the decision of adjusting your life insurance policy, you can gladly do so at any time.
With the help of technology, it also becomes easier for you to monitor your life insurance policy. You’ll no longer have to keep meeting your agent physically, just for you to ask about the current status of your policy or to make any changes. Most life settlement providers have a website – much like that of an online banking site – wherein you log in your specific details, and make your adjustments to your liking.
With these benefits of having a life insurance policy, now you can be more decided that having one is going to be worth every extra dollar that you’re going to spend on it. In fact, it’ll run as one of the best investments that you can have, not only for yourself but for your family as well. While you don’t have control as to when it is the time for you to leave this world, you have control over how you are going to leave, in such a way that the family that you left behind isn’t going to suffer a drastic financial loss, too.