Finance : Life Insurance Benefits

1443 Words Dec 12th, 2016 6 Pages
Finance: Life Insurance When I was young, I didn’t care about saving money, and I just spent it on food. As a college student, my uncle, who works for the World Financial Group, told me that I should start saving money for my college tuition and retirement. He suggested that I invest in life insurance to make more money instead of putting all of it in the bank. So, I decided to buy life insurance after I got a job to pay for it monthly. Despite the risk, the promise of earning one million dollars within ten years is hard to give up. In addition, I was told that I can withdraw money from the life insurance without paying tax after ten years. Recently, my sister had to get student loans to pay for her college tuition at UC Davis. If my parents had life insurance, then my sister wouldn’t need student loans to pay for her tuition. Life insurance can benefit parents and students who want to pay off all their loans while still saving money for retirement. One of the most important reason to get life insurance is to set a family for life, and it also provides favorable tax treatment to the family. This is the most essential insurance that protects the client’s family. Life insurance doesn’t insure a person’s life, instead it insures that the family is able to continue on without being financially devastated (WSB, 29). Furthermore, the federal law provides favorable income tax treatment of life insurance for the policy owner and the consumer (Bowman, 52).…

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