Why Life Insurance?
- To help you save money for education of your children
- To act as a savings plan for the future so that when you retire, you can boost your retirement income
- To ensure that you have extra income when your earnings are reduced due to serious illness or accident
- To provide you, as the policyholder, with peace of mind when cover is adequate
- To ensure that your immediate family has cash and income after your demise so they can easily pay bills, taxes and other obligations.
- To ensure that your immediate family members are able to maintain their standards of living upon your demise
Advantages of Life Assurance over other financial instruments
- Very low risk
- Growth over fixed term through bonus allocations
- Life cover thus acquires a guaranteed value immediately upon inception. It provides protection of family income in event of death hence creating an immediate estate
- Tax relief benefit. The government has given a relief of 15% of monthly premium or Ksh. 5,000 whichever is less to all life policy holders. This is a saving on taxable income
- It is a tax free investment. The final payout is not taxable
- Life policies can be used to secure credit as collaterals
- Premiums are constant throughout the term
- Forced savings hence ensuring money is saved for purpose intended
