For financial security after death
Life insurance helps provide financial security for those you care about after your death. Indeed, if your loved ones depend on you financially, if you die suddenly, they will experience some financial difficulties. Life insurance replaces the income you should have given them. It covers the family of the deceased and will help meet certain monthly expenses.
To pay the cost of the funeral
Death does not prevent. And sometimes it happens that the family is strapped for cash during this painful time. With life insurance, loved ones can afford to pay for the cost of the funeral, which can sometimes be sizeable.
To pay the debts
Debts are not written off after death. So, for example, if you and your spouse have co-signed a loan (mortgage or not), it is possible that your spouse remains indebted to your creditors, and must therefore continue the repayment. The creditors will return to the successors to recover their due. By purchasing life insurance, you relieve your successors of these financial responsibilities that may remain after your death.
To increase retirement income supplements
Life insurance is also an investment for your income after retirement. Indeed, life insurance can ensure that you have a regular and not insignificant income each month. And you can get this insurance when you retire.
To protect your business
Life insurance isn't just for you and your family. Some health insurance plans provide protection for your business. If you have a partner, after your death, the partner can redeem your units and pay the money to those you designate. This will prevent your business from suffering major financial problems associated with the death.
To benefit from tax reduction
French taxation 2020 provides that contract premiums for a period of at least six years allow you to benefit from a tax reduction of 25% with a certain limit. Also, if you have dependent children, this limit may increase.
To make forced savings
We must also see life insurance in this light: forced savings. A lot of people try to keep a certain level of savings, but they don't always succeed. Purchasing life insurance can solve this problem. It will be necessary to negotiate with the insurer on the terms and provide options for withdrawal or resale of the insurance.
For cheaper coverage
Life insurance doesn't have to be expensive. In fact, the principle is to start subscribing as early as possible. In fact, contributions will be more affordable and cheaper when you are young, healthy and single. If you are married, consider doing it this early too, as conditions may change. The rule is therefore to subscribe as early, because if you are indeed eligible today, you may not be eligible tomorrow if you fall ill. Do not hesitate to carry out a comparison of life insurance to choose which one suits you the most.
To invest differently
Life insurance is a financial investment. There are several types of life insurance for this purpose. Whichever you choose, realize that life insurance is an investment you make for the long term. If you follow the news economic, you know that you are investing your money, which you can sell or recover later when the retirement age arrives. Take advice from your insurer to see where you can invest this money that is invested in the long term.
For peace of mind
As we have already said above, death does not prevent and it is, moreover, inevitable. In the face of this, the least you can do for your family is to secure their future financial side. Know that even the smallest life insurance policy can become a big contribution to your loved ones after your death. This will allow them to help them in certain difficult times.