Why Buying Life Insurance as a Gift This Christmas Could be the Best Decision You Make

/ Life Insurance / Dec 3, 2022

Life insurance can be an awkward gift to give to loved ones, especially during the holidays. However, if you really care about your near and dear ones deeply, there are several reasons why purchasing life insurance as a gift this Christmas could be the best decision you make. Here are a few of them.

The Emotional Benefits

The first and the most obvious reason that buying life insurance for someone else is a great idea is because of how it impacts them emotionally.

When you buy life insurance for someone else, you’re giving them an insurance policy that protects their financial future and guarantees they will never have to worry about providing for their family if something should happen to them.

Giving someone such an invaluable gift helps alleviate any stress or burden associated with potential tragedy, which can do wonders in terms of improving your relationship. In addition, many people choose to give away smaller amounts of life insurance policies around birthdays or other special occasions, which are often far more impactful than material gifts.

So why not gift a life insurance policy this Christmas?

The Financial Benefits

Insurance can offer tax benefits, which are always handy during gift-giving season. The cash value in whole life insurance is something you build over time and it accrues interest. That interest is not taxed until you withdraw; so if you take out an annual $2,000 withdrawal from your policy, that’s not income until you actually get your hands on it.

You don’t pay taxes on dividends from variable universal life insurance policies, either. Variable life insurance also allows for loans against these policies—you can withdraw up to 50 percent of your current cash value without penalty—and these loans don’t count as taxable income either.

It’s the Most Wonderful Time of the Year

It’s that time of year again. The shopping lists are nearly finished, holiday card envelopes have been addressed and signed, and decorations have begun to arrive at your doorstep. Now that you’re well into December, it might be time to start thinking about gifts for those special people in your life – like friends and family.

It might seem early, but we can’t think of a better gift than giving someone you love financial security. Life Insurance ticks all the categories as far as financial security is concerned. As a result, we think buying life insurance as a gift this Christmas can be the best decision of yours.

So, Who Do I Buy A Policy For?

If you’re like most people, you probably know at least one person in your family who has been talking about getting some kind of life insurance. But if they haven’t got it yet, it could either mean that they don’t understand how valuable it can be. By giving the gift of life insurance this Christmas, you can do a massive favour for him/her.

Also, in case you have a stay-at-home spouse, the gift of life insurance makes a lot of sense. Here’s why.

We’ve Got the Gift That Keeps on Giving!

While most people only give gifts during major holidays like Thanksgiving, Christmas, and Hanukkah, life insurance is something that can provide your loved ones with consistent financial support for years to come.

Because of its power and stability over time, life insurance makes an excellent gift any time of year. If you’re looking for a way to help family members or friends protect their future – no matter what stage of life they may be in – buying them life insurance could make for a great holiday present.

After all, it’s the gift that keeps on giving.

Know more about buying Life Insurance policy as a gift – get in touch with our advisors for a free quote!