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5 ways life insurance is beneficial to your wealth

By LLM Reporters  |  September 24, 2021
life insurance

While car insurance for your new luxury vehicle might be a top priority when it comes to cover, life insurance is something that should take precedence – particularly when it comes to high-net-worth individuals.

Essential to ensure your family are looked after should the worst happen, life insurance will make certain that they are able to meet any necessary financial commitments after you’re gone by providing them with the financial liquidity they need, and will ultimately keep them living in the manner to which they have become accustomed, no matter what. Not only that, but it will also ensure that your financial assets and estate remain protected, and that you’re able to leave a legacy behind, giving you peace of mind regardless of what the future might hold.

If you’re unclear on exactly how life insurance can be beneficial to your wealth and help protect your family’s future, then read on – because it pays to be in the know, and they are certain to thank you for it.

A forced investment

Life insurance might be seen as a forced investment, but will protect those you leave behind by paying out a sizable lump sum in the event of your unexpected demise. Many families battle to make ends meet when the breadwinner is no longer able to provide, but when there is a structure in place to accommodate this, it makes it easier to partition each portion based on the requested cover. According to the experts at discountlifecover.co.uk, it’s the most important investment you’ll ever make.

Life insurance might be seen as a forced investment, but will protect those you leave behind by paying out a sizable lump sum in the event of your unexpected demise

Tax-deferred growth

Taking out a life insurance policy will ensure that the taxman cannot touch your financial assets and accounts as they grow, saving you a substantial amount of money and allowing your life insurance to appreciate as much as possible and at a quicker rate. So any interest your money gains will also be tax-deferred, adding more to your policy and the eventual takeaway for your dependants. When you put it like that, it’s clear to see the benefits of taking out a policy sooner rather than later – particularly as you never quite know what life has in store.

Professional policy management

When you invest in a policy, you’ll be assigned a dedicated advisor who will look after your money. Their responsibility is to let you know when your annuity is doing well and when it isn’t, and to advise you on the best way to handle it in order to maximise returns. 

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A life insurance policy can make all the difference to your loved ones should the worst occur

A protected policy

Establishments that handle life insurance policies are professional ones and will thus ensure that your money is protected. So there is no need to worry about it potentially just disappearing out of the blue, or not being accessible when it is needed the most. Measures are put in place that should they for whatever reason need to shut up shop, you will have a payment plan in place for all the money you would have contributed – so you’ll never be left high and dry, no matter what.

Adding to your estate

In addition to your already valuable estate, taking out life insurance will boost its value overall. If the beneficiaries are not of age, you can place it in a trust from which they may retrieve it when they become legal adults, but if there is no direction given around this then the lump sum will all be paid into your estate expenses. If you haven’t built generational wealth, life insurance is an excellent way to start, and can set children up for a prosperous future.

From paying for your children’s school and university fees, to the day-to-day upkeep of your home, and improving the lives of loved ones left behind, a life insurance policy can make all the difference to your loved ones should the worst occur – so consider investing in one today for peace of mind and to protect your financial wealth, too.