Advantages and disadvantages of Life Insurance

Submitted by frndzzz on Thu, 04/08/2021 - 07:55

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