Having a life insurance policy is a great way to protect your family in the event of your death. Most group plans cover one to two times your yearly salary. However, this level of coverage can leave your family vulnerable to financial ruin within a year of your death. You can always purchase additional coverage through a group policy or at a discounted group rate. However, most group policies are not portable and you may need to purchase insurance from another source if you lose your job.
There are advantages and disadvantages to owning a life insurance policy. However, before you decide to purchase one, it is important to understand what it covers. The best life insurance for your family is one that pays out a death benefit to your family after you die. The benefit of such a policy is that it can cover funeral expenses, which are usually in the range of $7000 to $12,000.
Most of the premiums paid to a life insurance policy go to the insurance company's fees and commissions. A small portion goes to the cash value of the policy. In addition, loans taken against life insurance are subject to interest. In addition, if you die before paying the loan back, the best insurance companies in kenya will reduce your death benefit.
There are several factors that affect the cost of life insurance for your family. One of the biggest factors is health. People with chronic health conditions are more expensive to insure than healthy people. Smokers pay more for life insurance than non-smokers, and insurers will factor their past health history into their rates. Other factors to consider are gender and occupation. For example, males typically live shorter lives than females, and their job duties tend to be more dangerous.
Another important consideration when calculating the cost of life insurance for your family is your income. If you earn $75,000 a year, you will need a life insurance policy with a coverage amount of at least $750,000. However, many experts consider this number to be a low estimate and may not be enough to cover college loans or mortgages.
The cost of having a family health insurance policy can be deductible on your federal tax return, as long as you itemize your deductions. Some items are exempt, however, such as prescriptions and over-the-counter drugs. You may be able to get a deduction on these items if they are prescribed by a medical professional. You may also be able to deduct air purifiers or certain vitamins if they are used to treat a chronic illness.
The cost of family health insurance premiums is deductible if you are covered by the insurance policy from the insurance agency in kenya. This deduction depends on the amount of money you spend on health insurance and your adjusted gross income. It is important to note that very few people qualify for this deduction. For this reason, you should seek tax advice from professionals.
If you're planning to purchase life insurance for your family, it's important to understand the terms and benefits of the policy. A good term life insurance policy will pay a fixed amount of money during a specified period of time. This can be anywhere from fifteen to thirty years. During this time, your premiums will never go up or decrease. However, if you outlive the policy, you'll have to renew it at a higher premium.
Compared to permanent life insurance, term life insurance is more affordable. Because you only need it for a specified period, the premiums are much lower. It is a good choice for young families with limited or no financial needs. Term life insurance can cover a family for several years, from the time a parent is financially dependent until the children are old enough to support themselves. In addition to its low price, term life insurance is easy to understand and compare, so you can find the right policy for your needs.
One of the great benefits of having a family insurance policy is that you can borrow against the cash value without incurring taxes. This means that the money in your policy will be available for use when you need it most. You can take out loans from your cash value for a variety of reasons, from paying for college fees to a home down payment. Many people also use their cash value to pay insurance premiums. They can even use it to buy more insurance or a higher death benefit.
Another benefit of a cash-value life insurance policy is that the amount of premiums you pay into it can grow tax-deferred, which is a great way to save for the future. These policies also have a guaranteed death benefit, which is usually income-tax free