The road lying ahead is not a straight one but a serpentine path. You do not know at which turn you will meet uncertainties and unfortunate happenings. That is why we need to search for security. An insurance policy gives us some assurance that we are always secured comes hell or high water. More and more of people are appreciating the need of life insurance and buying a good policy to protect themselves from unfortunate happenings. Several companies are offering life insurance policies and many more are making entry into this market. All of the policies do not provide the same offers. So, your choice must be based on your needs and financial strength. You may be at a fix as to which policy to buy. So, it is better to seek for an expert’s suggestion.
A life insurance adviser is a specialist in this regard. He has extensive knowledge and invaluable experience to give you good suggestion. He has the nitty-gritty of insurance market at his finger tips and will be able to find out the best policy for you. And it will not take much time for him to search a policy that offers the maximum possible coverage at an affordable rate. The person may throw some intimate questions about your financial condition. Be frank with him. Never hide any detail; otherwise he may not be able to provide you proper advice. He will first make a thorough scrutiny of what you need and then assess how much you can afford. Finally, he will decide which policy will make the ideal choice for you.
There are many insurance advisers working in this arena and you need to locate the best of them. Check if the person holds a license to practice as an insurance consultant. Also make it sure that he has good reputation in the market. How much does he charge for consultation? It is also a factor to take into consideration. And last but not the least, always meet him in person, Ask for an appointment over phone. Remember, you are going to team up with him in search of a good insurance deal. So, apart from being an expert, the person must be friendly in nature.
When you buy an insurance policy, you need to pay regular premium. Greater the coverage, higher will be the volume of premium. If you do not like the intervention of any third party while buying a policy, make it sure to judge your affordability and requirements. Do you need an individual policy or a comprehensive insurance plan for your spouse too? Needless to say, the second type will be more expensive than the first one. It just requires you to maintain the right sort of balance between the facilities you need and premium you can afford.
A life insurance policy is an extremely interesting financial product, for several reasons. We have already listed five hard benefits of a life insurance policy.
1. Take care of your next of kin
You marry, have children or buy a house. In all these cases it can certainly be useful for you to take out a life insurance policy. If you die, your partner can continue financially. If you do not have a life insurance policy, there is a risk of a financial hangover.
Not to mention: after your death your partner will inherit not only the possessions, but also the debts. Imagine: you build or buy a house together with your wife and you suddenly die. What about the repayments of the home loan, if suddenly there is only one breadwinner left? In such a case, you can avoid many problems with a debt balance insurance policy. Thanks to this insurance, your partner will be reimbursed (part of) the credit. Debt balance insurance is not required by law, but is often requested by the credit institution. She is certain to be appointed. You also do well to insure at least 75% of the borrowed capital on each partner’s head. This way you build in a certain extra margin.
2. Build up a supplementary pension
If you opt for a life insurance policy, you can thus build up a supplementary pension. No unnecessary luxury, considering the verification problem that our statutory pension system is struggling with. You can opt for a one-off capital or for a benefit in the form of an interest when you receive the accrued credit.
3. Enjoy a tax benefit
A life insurance policy is fiscally attractive. For example, with branch 21 insurance you can recuperate 30 to 40% of the premium via your tax return.
4. Transfer your assets without problem
When signing a life insurance policy, you designate a beneficiary. Thanks to a correct interpretation of the beneficiary clauses, you can transfer your assets to the next generation in a tax-efficient way.
5. Invest advantageously
A life insurance policy can also be used to invest. You then have the choice between a branch 21, 23 or 26 product.
Take 21 products have the advantage of offering a guaranteed return or a capital guarantee. The return can be added to with a profit sharing, depending on the results of the company. If it does well, you can expect a little extra. However, if it has a bad year, you should not really count on an extra bonus.
Lastly, branch 26 products can be an interesting alternative, because no premium tax has to be paid. Since the introduction of the premium tax, the popularity of these products has also risen sharply. These are pure capital products, whereby withholding tax is levied on the yield.