It is Not an Investment
Instead of being an asset, life insurance is a liability or expense just like health insurance. It ensures to provide coverage against serious illness. If you are not in a position to bear hospitalization expenses, life insurance can save your dependents from future troubles. They can lead a decent life even after your death. It is the best part and purpose of life insurance.
In different countries, you can easily cover the premiums that you are going to pay for life insurance. You can also get the maturity amount which is not taxable in different places. Insurance can be used widely by the financial advisors to cut tax burden.
Benefit of Term Insurance
Insurance companies provide different types of insurance products, such as variable, term and universal insurance, most of the products are complex to understand. This way, term insurance is the best type because of its affordability and simplicity. It gives amount in lump sum in case of death and in case it has no conditions and clauses. It is also the cheapest product and very easy to understand.
Safety with Government Rules
The insurance sector is heavily regulated by the government to ensure having enough assets in the insurance company to cover your debts. It means you can ensure peace of mind in case of death and the money is given by the company. These companies also don’t go bankrupt. Government ensures avoiding failure of insurance companies.
Life insurance can provide coverage till the time to have enough of corpus for the dependents and you can take insurance from 5 to 20 years.