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What are the benefits of life insurance ? Why do I need it? How does it help me?  All questions we need to ask ourselves but seldom have the answers

 

The benefits of life insurance

 

Life insurance offers several advantages not available from any other financial instrument.

U Covered offers a great selection of policy coverage, for life, car, household, and other items. Please give us a call, for all your insurance needs! Below are the benefits of life insurance, and why you need life insurance, for yourself, and your loved ones.

  • The benefits of life insurance are that they provide an infusion of cash for dealing with the adverse financial consequences of the insured’s death.
  • Life insurance enjoys favorable tax treatment unlike any other financial instrument.
    • Death benefits are generally income-tax-free to the beneficiary.
    • Death benefits may be estate-tax free if the policy is owned properly.
    • Cash values grow tax deferred during the insured’s lifetime.
    • Cash value withdrawals are treated on a first-in-first-out (FIFO) basis, therefore cash value withdrawals up to the total premiums paid are generally income-tax free.
    • Policy loans are income tax free.
    • A life insurance policy may be exhanged for another life insurance policy (or for an annuity) without incurring current taxation.Note: All of the benefits of life insurance, above, are generally true; however the tax benefits  have certain limitations which under the wrong set of circumstances can cause the tax benefits mentioned to be lost.  Please discuss with our U Covered  insurance and tax advisors. 
  • Many life insurance policies are exceptionally flexible in terms of adjusting to the policyholder’s needs.  The death benefit may be decreased at any time and the premiums may be easily reduced, skipped or increased.
  • A cash value life insurance policy may be thought of as a tax-favored repository of easily accessible funds if the need arises; yet, the assets backing these funds are generally held in longer-term investments, thereby earning a higher return.

 

Hopefully the benefits of life insurance, above, have made it abundantly clear, why you need life insurance. Give us a call today, for effective low premium insurance,

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