Life Insurance Policies vs. Savings Account

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Why should I get a life insurance policy rather than saving the money myself?

Life Insurance Policies vs. Savings Account

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.



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