When you buy life insurance, you can be sure that your loved ones will be taken care of in the event of your demise. In exchange for making designated payments, also known as premiums, your insurer will pay a death benefit to your beneficiary after you pass away.
This lump-sum payment can help your family cover various expenses. Here are seven advantages of getting life insurance. 1. Payouts are tax-free Life insurance payouts are tax-free. The beneficiary of your death benefit doesn’t have to report the earnings when they file their taxes. 2. It can cover funeral costs Funerals are expensive. The average Canadian spends around $10,000 on after-death costs. This amount can vary drastically depending on the options you select. Life insurance can help your beneficiaries cover funeral expenses. 3. It can be used to pay your mortgage Life insurance can help your dependents and surviving family members to pay off your mortgage and other debts. The size of your life insurance policy will determine how much is left to your family after your death. Speak to an insurance broker to determine the right coverage for your situation. 4. It can provide coverage for terminal illnesses Some life insurance policies offer a terminal illness benefit that allows you to access a lump sum payment if you’re diagnosed with a terminal illness and you have less than 12 months to live. 5. It can supplement your retirement savings Certain life insurance policies can accumulate cash value in addition to death benefits. Over time, this cash can be used to cover various expenses and can even be used during your retirement years if needed. 6. It can be used as a charitable contribution You can also name a charity as one of the beneficiaries of your death benefits. This is an excellent option for individuals with few surviving family members. 7. It can be combined with other types of insurance Many companies offer discounts on your premiums if you sign up for multiple products such as home, life and car insurance. Reach out to your insurance broker to find out how you can benefit from combining insurance. Life insurance in Nova Scotia If you’re looking for life insurance in Halifax or Dartmouth, Eisenhauer Insurance Inc. can help. We can help you secure different types of insurance to keep you and your family covered through life’s many challenges. Life insurance, travellers insurance, high-risk car insurance and home insurance are among our specialties. We’re committed to helping you find the right coverage to meet your individual needs. Contact us today for a no-obligation quote.