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Some may wonder why they should give their money to an insurance company when they can set up a saving account to put away money for their spouse and children, especially since they will be able to keep every penny if the money goes unused. Although that is a feasible solution, life insurance policies are to protect your loved ones; however, money from a savings account will not protect your loved ones from the Tax Man. The money that your loved ones would receive from a life insurance policy payout is usually tax deductible, unlike money they would withdraw from a savings account. Furthermore, if something happens to you sooner than anticipated, the appropriate amount of money might not be available in a savings account. These are just two of the many reasons why most opt for a life insurance policy, rather than saving the money on their own.
|Jennifer Mathes, Ph.D.|