There are many advantages of life insurance that make it a worthwhile investment for anyone, but there are particular groups of people that really should consider it. These include but are not limited too: people with large tax costs, people worried about protecting their pension, people looking for tax sheltered investments, those with dependents relying on them and people who want to use their life insurance for charitable causes after their passing.

One of the main advantages of life insurance is that a beneficiary can be named. The beneficiary that is named does not need to be a relative; it is also possible to name a charitable organization. The beneficiary will receive a death benefit in the case of the policyholder passing on. The death benefit, under Canadian law, is tax-free and will help to cover the things such as funeral expenses, mortgage payment and living expenses for the people remaining. However much the policyholder’s life insurance is worth, the beneficiary named will receive that much money and not a penny less. This is particularly important in the case of sudden deaths of people with dependents who are left behind. With life insurance the policyholder can continue to care for and support their family financially, even after they are gone. In the case of a beneficiary dying before the policyholder does, a contingent beneficiary can be named. It is also possible to name multiple beneficiaries and specify how much of the proceeds each one will receive. If one of the beneficiaries is a minor then a guardian or trustee needs to be appointed to monitor the payout of the proceeds of the death benefit. Many life insurance policies also offer a living benefit, which means if the policyholder is diagnosed with a terminal illness with less than 12 months to live they can access a percentage of their tax-free death benefit. For those who are worried about large tax costs, there are life insurance options available that have a tax defend investment component. Many life insurance policies will also allow the policyholder to take out loans against the cash value of their insurance. These loans normally have low insurance rates and can be paid off either in installments or in one lump sum.

As has been shown, life insurance has many advantages and is a great way to save money that will help look after the people or charities dear to the policyholder’s heart after they are gone. There are many different life insurance options available to help anyone get a policy that works for them. Before consulting an insurance agent, make sure to look into all of the choices available so you get the perfect policy for you. While life insurance has some advantages during the policyholder’s lifetime, it really helps provide relief by ensuring that loved ones and important charities will still be cared for even in the unfortunate case of a death.