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Writer's pictureKL Chia

6 Things You Didn't Know About Life Insurance


1# Provide Money to Help the People You Love


You work hard to provide for the people you love, seeing to it they have what they need. But what will happen to them when you pass away?

Think about It:

How they’ll be able to pay for such things as your final expenses, debt, the mortgage, care of a child, or even a college education for your kids or grandkids.

Life insurance provides them with a sum of money, known as a death benefit.



2# Build a Legacy


You want to leave a meaningful amount of money to the people you love and the causes you care about. You also want to minimize the impact.


Think about it:

  • Would you prefer you’re Father/Mother to leave large amount of debt, final expenses, mortgage, child care or even education fees to you?

  • In a worst scenario as a father and mother pass away at the same time, what could happen after that?


3# Create Another Source of Income, Especially for Retirement


As you go through life, you’ll probably have some large expenses, such as paying for your kids’ or grand kids college educations, the mortgage, or a major emergency. You may also want to supplement your retirement income—another large expense.


Over time, many whole life insurance policies offer you the potential to accumulate cash value. It can be used any way you wish, including as extra retirement income. Whole life policies are often used as part of an income strategy.



4# Have Access to Money In Case You Get Sick


People are living longer than ever before. It’s important to think about how you could get the extra money you might need to take care of yourself if you get a chronic or terminal illness. Permanent life insurance or critical illness policy can help.



5# Pay Less in Taxes


Taxes are a fact of life. Many of us don’t want to pay any more in taxes than we absolutely have to. Life insurance offers tax benefits. While you’re living, you can take income tax-free from the cash value of your whole policy.


6# Protect Your Business also known as Keyman Insurance or Business Succession Trust


As a business owner, you have a lot to protect—your business, your employees, and your family. If one of your partners or key employees dies or becomes disabled, there needs to be as little impact to your business as possible. You also want to attract and retain top talent.


Permanent life insurance can help with business continuation when a partner or key employee dies. It can also help facilitate the exchange of business ownership in the event of your or a partner’s retirement, disability, or death. Without depleting the business’ capital. Permanent life insurance can be used to fund non-qualified retirement plans. Term policies can also be used to help protect your business.

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