Life insurance comes with many benefits which secure you and your family, the major advantages and disadvantages are listed below.
Advantages of life insurance
- Life insurance protects your family, it also pays for long term care or chronic illness
- Life insurance secures your child's future, it helps to plan for further studies by saving money in the form of life insurance
- Life insurance has Financial security with no security expenses and no market fluctuation in value
- Tax benefits and investment element, it builds tax-advantaged wealth
- Death benefits come with income-tax-free to the beneficiary
- Death benefits help the beneficiary to become financially strong
- Living benefit
- It prevents loan burden, pays off debt, and encourage saving habits
- Life insurance can be assigned for personal loans, it becomes easy to take loans.
- Loans taken using policy are income-tax-free
- Retirement planning and peace of mind
Disadvantages of life insurance
- Risk of not paying policy
- Policy material omitted can be fatal
- Buying an expensive policy may increase your expense
- Buying a life insurance policy when without a need
- Buying complex life insurance products that have very few benefits
- Insurable interests