When shopping for life insurance, you will find that you have a number of choices for types of coverage. One of those options is to select permanent life insurance. Depending on your situation, there are some instances in which permanent coverage would be the best.
You Want to Invest Your Money
A permanent life insurance policy gives you the option of making investments. If you have been reluctant to invest your money directly into the market, you can do so through the insurance policy. The good thing about it is that you still maintain your coverage while not having to go through the anxiety of making investments independent of the insurance policy. Even if your investment is lost, you still have the comfort of knowing that your policy will pay out the insured amount.
You Need Protection from Taxes
If you have a large amount of financial assets, taxes could take a considerable amount each year from it. To potentially prevent this from happening, you can purchase a permanent insurance policy. The permanent insurance policy is an ideal method of sheltering funds when you have maxed out your tax-free savings account, or TFSA. The maximum amount you can have in your TFSA is $10,000 as of August 2015, which leaves your remaining assets vulnerable.
There is a downside to consider though. If you do decide to place your money in a permanent insurance plan and invest through it, you have no control over how your money is invested. However, if you have trouble managing your own investments, this could be a perk.
You Could Have Problems Getting Insurance in the Future
It is nearly impossible to predict what is going to happen in the future. Even though you qualify for a wide range of insurance policies now, there is no guarantee that you will be in a few years. If you develop a serious medical condition, life insurance companies could possibly deny you coverage or limit the amounts that you can receive.
To prevent this from occurring, it is a good idea to take out a permanent insurance policy now. The policy protects you so that no matter what occurs, you will have coverage. It is also a good idea for coverage if you have family members, such as children, who could potentially develop a health condition later. For instance, if you have a genetic disorder that your children could develop later in life, buying coverage now guarantees they are covered as they age.
For more information, contact Breckles Insurance Brokers Ltd. or a similar company.Share