In every man’s life there is always a time to live and a time to die, and after death, the loved ones shall either inherit your liabilities or your assets. Life insurance policy as important as we may think can be use to make life comfortable for your beloved family at your demise and so the uses of such a life insurance benefits are enormous and this page shall list and explain in number the answer to the question What are the major uses of Life Insurance Benefits. Remember that list shall not be exhausted here as the benefits can not all be listed down in this post.
The following are the some of the major uses of life insurance benefits:
PAYING FINAL COSTS
At the deceased of the person whose life was assured, the next thing is that the Life insurance policy benefits can be used to help pay for final expenses of his burial or even to pay for the expenses that may be incured in taking cae of him in the hospital which the health insurance policy did not cover and can also be used to pay for other unpaid obligations.
PAYING OFF DEBT OR REPLACING INCOME
The life insurance benefits may also be used by the survivors to pay off the loan of the deceased insured person and they may also use it to be paying for things he was paying for during his lifetime; to with: the school fees of the children and the hospital bills of the family.
INHERITANCE
under this some persons may choose that their life insurance benefits should be left to be inherited by their family or by a member of the family, and this among other ways of bequeathing property to the loved ones can be claimed by the person who was included as the beneficiary at the death of the person whose life was assured. Often it is advisable that the name of the person who is to have the life insurance policy as his benefit should have his name written explicitly on the insurance policy to avoid some quarrel and fight by the family member over the benefits at the death of the assured person.
PAYING FEDERAL OR STATE ESTATE TAXES
Your life insurance policy may be used to pay the federal or state estate taxes by your children at your death in order for them to claim your properties as is share on your will. Most state law or federal laws demands that before the beneficiaries of the will lay their claim of the content of the will that they will have to pay some taxes and this may be problematic for your heirs if they are still of tender age at your death or when you left nothing for them.
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CHARITABLE CONTRIBUTIONS
For those that have burning desire to always laying meaningful contribution in people’s lives, their insurance policies may also be used to contribute or continue charity extensions in peoples lives. but if the life insurance shall be intended to be used for charitable contribution, then it will be suggested that you expressly state so and also inform your family this, so that your death the benefits shall be moved to the charitable home immediately.
We believed that this post has helped to broaden your knowledge on the use of life insurance benefits and we suggest that you should consult your insurance agent so that he can explain further on the different insurance agents and the one that may be befitting to you and your family. What are the major uses of Life Insurance Benefits.
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