At Corner Brook Life Insurance, we like to provide information to our valued clients, keeping them up-to-date on the life insurance marketplace.
One of the most common questions we receive is about the advantages and disadvantages of purchasing life insurance. Whether you are seeking Term Life or Whole Life insurance policies, you need to become familiar with the advantages and disadvantages of having life insurance.
Some advantages of having a life insurance policy include:
- Life insurance provides the necessary finances and cash required by families when dealing with the consequences of the insured’s death.
- Life Insurance may provide favourable tax benefits unlike any other investment or financial instrument available.
- Many life insurance policies offer flexibility in terms of adjusting to the policy holder’s needs.
Some disadvantages of having a life insurance policy include:
- Policy holders often sacrifice having a portion of their income available because they have to pay policy premiums. It must not be forgotten that a life insurance policy generally benefits others.
- Cash surrender values are usually less than the premiums paid in the first several policy years. Sometimes a policy owner may not recover the premiums paid if the policy is surrendered.
- Purchasing the correct life insurance policy can be a difficult process, especially when dealing with some life insurance companies.
At Corner Brook Life Insurance, we can work with you to ensure that you find the best policy. Our agents are experienced and knowledgeable, and can help you avoid some of the disadvantages associated with life insurance.
For more information, contact Corner Brook Life Insurance.