joel.francis.7351
Par 100 posts (V.I.P)
Life insurance is meant to protect the policyholder and his or her family from uncertainties such as death.
And, it is also possible to use it for passing on wealth to your heirs, something high net worth individuals (HNIs) are slowly adopting.
There is a trend of HNIs purchasing term life insurance policies.
“We find protection plans being purchased by HNI businessmen that extend beyond 60 years, at times up to 80 years. They buy insurance not only for protection, but to address the need for legacy transfer.”
-Deepak Mittal, MD, Edelweiss Tokio Life Insurance.
“Since life insurance is one of the few financial products that are long-term, it would be a good idea to include a component in succession planning.”
-Parag Mathur, general counsel at BankBazaar.com
“The biggest benefit of using life insurance policies to pass on wealth is the advantage of the tax shield. Returns in the form of interest, dividends, and capital gains are sheltered from tax. Therefore, you can transfer the wealth without the burden of the tax."
-Naval Goel, founder, PolicyX.com, insurance aggregator
Life insurance is a cornerstone of your financial plan, for these reasons.
It provides income replacement.
The policy’s death benefit might also be used to pay off a mortgage, supplement retirement savings.
It can be used for estate planning.
You can use it to support a charity of your choice.
Term insurance is the type of insurance with the cheapest cost per thousand in comparison to any other form of insurance.
Insurer pays a lump sum upon your death, and the proceeds are typically 100% tax free.
And, it is also possible to use it for passing on wealth to your heirs, something high net worth individuals (HNIs) are slowly adopting.
There is a trend of HNIs purchasing term life insurance policies.
“We find protection plans being purchased by HNI businessmen that extend beyond 60 years, at times up to 80 years. They buy insurance not only for protection, but to address the need for legacy transfer.”
-Deepak Mittal, MD, Edelweiss Tokio Life Insurance.
“Since life insurance is one of the few financial products that are long-term, it would be a good idea to include a component in succession planning.”
-Parag Mathur, general counsel at BankBazaar.com
“The biggest benefit of using life insurance policies to pass on wealth is the advantage of the tax shield. Returns in the form of interest, dividends, and capital gains are sheltered from tax. Therefore, you can transfer the wealth without the burden of the tax."
-Naval Goel, founder, PolicyX.com, insurance aggregator
Life insurance is a cornerstone of your financial plan, for these reasons.
It provides income replacement.
The policy’s death benefit might also be used to pay off a mortgage, supplement retirement savings.
It can be used for estate planning.
You can use it to support a charity of your choice.
Term insurance is the type of insurance with the cheapest cost per thousand in comparison to any other form of insurance.
Insurer pays a lump sum upon your death, and the proceeds are typically 100% tax free.