18/04/2018
Advantages of Life Insurance!!!!!!!!!!
Life insurance provides an infusion of cash for dealing with the adverse financial consequences of the insured’s death.
Life insurance enjoys favourable tax treatment unlike any other financial instrument.
Death benefits are generally income-tax-free to the beneficiary.
Cash values grow tax deferred during the insured’s lifetime.
Cash value withdrawals are treated on a first-in-first-out (FIFO) basis, therefore cash value withdrawals up to the total premiums paid are generally income-tax free.
Policy loans are income tax free.
A life insurance policy may be exchanged for another life insurance policy (or for an annuity) without incurring current taxation.
