Most of us may look at insurance as a policy that secures our belongings or life for that matter. Well, there are many tax-related benefits that can make life insurance policies an investment and tax planning tool.
One of the most important advantages of life insurance when it comes to tax planning is letting the insurer go income tax-free. The best thing is that the recipient of the funds can make full use of the money for various things such as replacing lost income, paying off debt, or meeting other important needs during a difficult time.
Life Insurance policy includes certain terms and policies based on which you have to submit a particular amount of money to the life insurance company after regular intervals. This money invested regularly is returned with interest-based on your need and the policy signed. The needs and requirements on which the payment is provided are decided in prior and mentioned in the policy itself. Obviously, the terms and conditions for the same vary up to a great extent. This is why one must check all the conditions in advance and then select the policy that best suits them.
There are basically two types of life insurances;
1. Term life insurance
2. Perm life insurance
Term life insurance
Ø As the name itself makes it clear; term life insurance is term based insurance.
Ø The insurance is done for a period of 5-25 years. Such policies prove to be a great aid at the time of certain emergencies.
Ø Hence, term life insurance serves as protection at times of need. Therefore, before investing, one must know the conditions that go along with the policy.
Perm life insurance
Ø The policy aims to cover the plans for the entire life.
Ø The Insurance company provides you with the amount in case of an accident or the amount is provided to your family after your death.
Ø The time taken to provide the amount depends on the policy you choose.
Ø This policy allows you to avail of the amount in case of any need.
There are certain points that must keep in mind before selecting a policy:
When deciding to choose among the life insurance policies, everyone wishes to choose the best. But, the best may vary from person to person. There are specific points one must keep in mind before selecting an insurance policy.
1. Budget- As the money you get is the amount you invested, with a nominal interest rate, you should choose a policy that requires the amount of investment that you can afford.
2. Interest rate- The interest rate provided by the company over your investment amount also matters. Higher interest rates are preferable.
3. Reliance- Make sure you carefully go through all the terms and conditions. Also, you should be able to make out or else find out that his reliant is the company. After all, you cannot afford to put your money into the wrong hands.
4. Company services- Carefully going through all the terms and conditions is vital. You must be very clear about what you are looking for in an insurance policy. Some companies provide the amount instantly while others take time. This fact must be taken into consideration.
5. Cautious- Make sure you check on the company’s relevance too. Cross-check things on your end and make sure everything is legally valid so that you do not end up being in trouble or be a victim of some fraudulent activity.
All the above points go hand in hand. Make sure to take all the points into equal consideration. For example, if a company provides the best interest rate but does not meet other expectations for you; there is a similar company providing comparatively lesser interest rates, but meeting up to your expectations, you would prefer choosing the one with lesser interest rates. This means that anyone aspect cannot be made the base of such an investment.
As there are many types of insurances one can have, one before investing must be clear of what they expect of the investment. An insurance policy must be selected accordingly.
For instance, if you meet with an accident, then you will require money immediately for your proper treatment. In this scenario, you would require a policy through which you will be able to access the amount immediately. While there is no need as such for yan immediate amount accumulation if the family is to be provided the amount after death. Evidently, having both of these investments is highly advisable.
Research Well Before Buying Any Life Insurance Policy:
Life insurance is an investment that has the capability to serve your special requirements, which come up in the form of inevitable incidents and your families after you are no longer there to provide for them. When it comes to investing in something so important, everything should be done with great caution.
Make sure to select the insurance company wisely. Read the company’s terms and conditions wisely and select an ideal company that satisfactorily meets either all or most of your requirements.
Why choose Waxhands?
When it comes to investment, Waxhands Europe is the name to trust. It is a company which was started by Erik Roosenboom, some fifteen years back. Their first machine was built right in their garage and was used at various fairs and festivals. Over the years, they have worked on the concept of Waxhands machines, which was used in Madame Tussauds Amsterdam that was well received throughout the world.
These days, most of the Madame Tussads museums are making use of these Waxhands machines, and people are delighted with their use. Moreover, there are numerous business owners and consumers who like to use this product. They are known to make huge profits out of it.
Becoming a part of Waxhands Franchise opens to you numerous streams which help you get your jumpstart in the world of business. It is certainly a unique business plan with no loopholes. With low investments to make, this business will surely take you a long way in the world of business.
I’m currently working as a Charted Accountant with Payroll Outsourcing Company. I have a great passion for outsourced accounting. In a previous couple of years, I have worked with big and small clients across numerous continents. I have a keen interest in outsourcing payroll processing, outsourcing of accounting, BPO outsourcing services, outsourcing financial services, outsource Back office services, etc.