Do you know the benefits of having life insurance? Understanding the advantages that life insurance and any other type of insurance offer can help us decide quickly and safely whether to take out our policy.
Why do we need life insurance?
Below we review the main benefits of buying life insurance:
Family financial protection
There is no doubt that-this is one of the main benefits of life insurance. By signing an insurance policy, you can guarantee a better financial future for your family because this way, you can guarantee their well-being and safety in your absence.
Almost every family in our country has some related debts—either a mortgage or a loan. Paying off debt is easier if income is recovered, and it can become a real headache. For this reason, life insurance can cover situations where we cannot continue working due to death or disability. Once the insurer pays the compensation, the debt can be settled. Or, if the contract insurance funds do not cover everything, at least reduce these amounts. Therefore, let the rest of the family’s basic monthly income be used to maintain the same standard of living as you.
Disability or sickness insurance
But in addition, the benefits of buying life insurance cover and protect our family members. Thanks to hiring, we will protect ourselves, the policyholder, in case there is a disability or illness specified in our policy. If this is the case, the subscription will face related costs that may be incurred when necessary. And the payment of the compensation agreed in the contract.
No embargoes or taxes
Another benefit to consider in life insurance is this. In the event of-the insured’s death, the capital paid by the insurer is used as compensation and is not subject to any inheritance, gift or personal income tax. This means that life and inheritance insurance are completely independent. Therefore, even if certain debts are related to inheritance, no one can withdraw the compensation amount from life insurance under any circumstances. And, of course, the inheritance tax does not apply to you.
Among the benefits of taking out life insurance, it is up to the insured to decide who they want to designate as beneficiaries. In this way, the compensation is not subject to inheritance or legality, so the beneficiary will receive full compensation without affecting the family’s or the heirs’ ability to make claims.
Mortgage Amortization Life Insurance
When we get a mortgage, we worry about facing monthly payments for years to come. By taking out life insurance, which covers mortgage payments in the event of disability or death, we guarantee that, if necessary, the amount will be used to cover the outstanding amount of the operation. In addition, another advantage is that when presenting the annual income statement, the cost of the insurance policy can be deducted from the part related to the performance of real estate capital.
For the self-employed, one of the advantages of life insurance is that they can deduct 500 euros from the premiums paid for the policy each year.
Life insurance is very flexible and fully adapts to the lifelong needs of the insured. At each stage we go through, our needs are constantly changing. Being alone and without a family that depends on us differs from being a parent with dependent children. Therefore, the flexibility of our policy allows us to adjust our coverage over time. To be able to trust what is needed at all times.