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Why You Need Life Insurance A cover that will pay you either on the death of a person or the end of the set period is called life insurance policy. In life insurance, the insurer agrees to pay a particular amount of money at the end of the month for agreed period of time. Let us look at some of the things that makes people go for life insurance policy. The first benefit of life insurance is the life cover. This is the primary benefit of life insurance policy. This is the amount of money that your insurance company pays to you or your nominee on your absence. You find that even if you will not be there at the maturity of your money the insurance firm will ensure that your children are well taken care of. A person that you appoint during the time that you are purchasing life insurance cover to take the benefits in your absence is referred to as a nominee. You children will be assured of their well-being since the nominee will take charge of your benefits in case of any unfortunate thing. You are advised that you buy a life cover that will cater for all the needs of your beneficiaries. If possible you can even buy a life cover that is ten times your income. Life insurance is also a long term saving. This is so because you will be systematically saving money with the firm at the end of every month. This is necessary as you will find that when you reach your retirement period you would have saved a lot of money. in addition to that, you would have achieved your goal of saving money maybe for your son’s wedding or to start a small business. Besides, you will get double benefits of protection as well as savings.
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Another benefit is the specific life stage planning. Most of this insurance firms have a provision of product tailor made at specific life stages. As a result, you and your family will be able to plan various goals at different life stages. Most common cases are; you can plan to buy a car, a house, a land, and educating your child, planning your wedding as well as saving money for your retirement.
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With life insurance you will be free from paying some taxes. Most insurance firms are covered by the constitution to the sense that you will not be taxed when saving with them. To start with, you are not going to be taxed from your premiums which you are going to pay every month. The next thing is that you are not going to be charged from your earning as money grows. Another free service is when you are ending your service when your money has already matured.