Life insurance is the key to tension free life

Who doesn’t want to have a secure life, all human being love their life. With passing time, technologies around us have become powerful and made our lives easy. People have a general notion that life insurance policy is for those with families. It is true that life insurance policies are very important for the families but it is also true that it is also important for an individual. Term Insurance policies save our financial resources against any mishaps of our life to protect the future of our family.

Benefits of having a Life insurance:
• By having a life insurance policy you can pass equal assets to your children who are not working in your family business.
• Life insurance policy helps in securing the future of your child’s educational purpose as the value of insurance policy increases if something happens to the your life.
• Policy holder doesn’t have to pay tax on the cash-value accumulation till the policy holder withdraws the amount from the policy.
• Life insurance can also be used for paying your estate taxes and other estate settlement amount.
• In case of business transfers, life insurance provides ready amount which can be financed for transaction among the business parties who are willing to buy the share of deceased person from his/her estate.
• In case of home mortgage, you can pass your family residence to your spouse or children if you have a life insurance policy for the house.
• Life insurance policy is the way to retain your business from sudden loss of any important employee. Any untimely loss of an important employee can cause heavy loss to the company.
• There are certain life policies that provide liquidity from which you can pay for your business or personal loan.
• Certain policy companies give good returns to its customer which is indeed a helpful way to save funds for retirement years.

• A benefit through life insurance policy is available immediately to your family if there is a sudden loss of life of the policy holder.
With the growing competition of the number of insurance companies it is hard to select the best one. There are different types of policies which are designed differently. You will have much choice to select the appropriate life insurance plans for yourself. These types of benefits are given to the one who has partner or family or children.

It is mainly to protect them. But there are also other companies who provide benefits of life insurance different for different family conditions.
Like with time, price of things increases, so the life insurance policy companies are also getting costlier. People want to have guarantee of life in reasonable price. So you have to be careful enough to choose the right plan for yourself and your family. There are generally two type of life insurance; Term insurance policy and Permanent policy. Before you buy an insurance policy, you need to understand it properly and also know the difference between two. You will always want to get best of deals for your family so it is better to do good research before settling for any of the life insurance policies.

Life Insurers Being Reinvigorated By Tax Relief

The removal of 5 percent premium tax and 0.25% documentary stamp tax on life insurance policies means continued survival of country’s life insurance industry. The life insurance premium companies from Malaysia, Thailand, Indonesia are stronger better capitalized than Philippine counterpart. The country’s ratio for direct premiums has increased to 0.71 percent. The penetration rate has reached to 1.86 percent in Thailand, 3.38 percent in Malaysia & 8.85 percent in Japan.

Still we are competing with insurers who have found creative ways to sell policies to high value, which deprive government of tax revenues & premiums to insurers. Most nations do not charge premium taxes, with others charging a slap for one time rate.
The removal of 2 tax forms would result in better sales for private insurers with more tax revenues to the government for improved sales. Only 13% of country’s population has 1 form of life insurance, of which 3-5 percent of insurers hold privately issued policies with majority of policyholders relying on government agencies which includes SSS & Insurance systems.

Half of privately issued policies are group insurance agents which are lower than individual policies making them available in terms of protection. Two congressional bills have been passed in 2 chambers of Congress, which the industry is hopeful to be signed by the end of October.
The premium rates have been increased several times which would reduce the tax burden & poor investment climate. At one time, life insurance industry is a negative rating which is due to weak capitalization & low profitability for tax burdens.