What are the Advantages of Investing in Life Insurance

Is life insurance a smart investment?

Life insurance pays your loved ones once you die. So, do you really need it? It does not benefit you, anyway. Some people view life insurance as a necessity, while others don’t. Life insurance will protect the family and help you reach their financial goals. Depending on your situation, let‘s first discuss the benefits of buying life insurance. The benefits will depend on the kind of insurance policy you buy.

Advantages of life insurance


  • Peace of mindlife insurance saves your loved ones from financial hardships caused by your death. It would help if you did not worry about how your family will eat, take kids to school, pay for health insurance, and more. You will have peace of mind that your loved ones will be safe even in the event you pass away unexpectedly.
  • Expanding your financial portfoliolife insurance comes as cash value components that increase your net worth. It is like putting money in an investment or savings account for a rainy day. You are even free to take a loan using your life insurance.
  • Tax benefitslife insurance gives you two tax benefits:
    • Tax-free death benefit payout – death benefit payouts are tax-free. If you have a high worth real estate, buy life insurance, and the government won’t take a massive cut from your real estate. The beneficiaries won’t pay taxes from the money they receive from the policy.
    • Tax-free cash value growth – for a cash value policy, all the interest your account earns will grow without you needing to claim it from your taxes. You can access your cash by borrowing it from this tax-free account.
    • Life insurance is unlike the 401(k) plans. You can borrow from your plan and pay back without expenses. If you use 401(k) plans, you need to pay a 10% penalty. You also must pay income taxes on the money you withdraw from both plans, though.
  • Flexible financial security – your loved ones can use the money to buy food, send kids to college, and pay mortgages. The universal life insurance will allow you to adjust your premiums and the death benefits as required. A term life policy that has a conversion option will enable you to extend your life insurance and offer lifetime coverage. Some riders can allow you to take an amount from the policy in case of a terminal illness.
  • Affordable coverage – it is common for people to overestimate the cost of life insurance. Some believe it costs 3-5 times the actual price. Truth be told, life insurance is quite affordable. This, however, depends on the policy you choose. Term life insurance is cheaper than the whole. There are still inexpensive options for pre-existing conditions and seniors. Some offer low rates for diabetic persons.
  • You can keep most of these policies up to the age of 120, so long as you pay the premium – under permanent life insurance, you don’t lose the coverage under a set number of years. For a term policy, it ends when you end your term, commonly at 65 or 70 years. No one will need your death benefit when you are 120. The heirs might have even passed away or are self-sufficient.
  • It is possible to exchange a life insurance policy for another life insurance policy e.g., annuity, without being taxed. 
  • Cash withdrawals up to the total premiums are treated as First-In-First-Out (FIFO) and are generally tax-free.

When should you start investing in life insurance?

start here

Start as early as possible

It’s best if you start planning soon enough for your life insurance. The older you get, you become less qualified to get one. Your health becomes unpredictable as you age as well. Deals are cheaper when you are younger. You also enjoy better options like the death rider.

Helps to buy various options

Life insurance presents great deals and profits in a variety of policies it presents. The more you invest on those policies, the more benefits you get. You can invest for as long as you want and achieve your goals later on. Contact your financial experts for consultation.

“ We have been dealing with BeamaLife for more than ten years now. They have been great advisors to us in terms of advanced risk management. They also helped to put in place pension plan strategies for our partners. BeamaLife has always been extremely professional and very attentive to our needs. Our sincere thanks! ”

Mr. Merchant
Software Company Owner

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Regardless of the topic or question, BeamaLife has unique individuals with the right background to address my concerns. As a result, I have a much clearer understanding of how certain wealth creation strategies were the right fit for my company. I also have been able to take much higher income tax deductions for the corporation by implementing a plan set forth by Neil Jesani. They have maintained an unmatched level of professionalism during my interactions with them over the years.”

Mr. Peters
Software Company Owner, California

“BeamaLife was referred to me by my CPA for my pension plan funding. I also wanted to take care of my estate tax need. Neil and his team have done a superb job of creatively funding my pension plan, acquiring most cost-effective life insurance for our estate planning need with very minimum out pocket using velocity of money principle and putting my existing investment to second use. They also help us setting up all our estate planning documents.”

Dr. Martin
New Jersey

“BeamaLife has been a great advisor to us for many, many years. They not only helped us take higher income tax deductions but, also helped us organize our investment portfolio in an efficient manner. Through this relationship, we were able to create substantial wealth with the very low out-of-pocket expense. Neil Jesani from BeamaLife is very responsive, professional and extremely knowledgeable”

Mr. Sakaria
Multiple Pharmacy Owner, New York

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