Is Life Insurance Taxable?
Taxes and life insurance have more in common than you may think. It is very likely you put off getting either done. When you do get around to completing your taxes, and if you're one of the lucky ones actually getting money back from your tax return, consider using it to help protect your loved ones.
It may be tempting to use that refund on something like upgrading to the latest and greatest phone or treating you and your family to a relaxing vacation, but getting your family's financial future protected with affordable and reliable Term Life Insurance can help bring you comfort and peace of mind.1
If you have been putting off life insurance because you thought it is too expensive, you wouldn't be the only one. According to the "2018 Insurance Barometer Study," when asked how much a $250,000 term life insurance policy would cost a healthy 30-year-old, nearly half of millennials overestimated by five times the actual amount.* With average cost for such coverage being lower than you might think, it may even be possible that your tax refund can pay a full years' worth of premiums to help protect your spouse, children and other loved ones who depend on you financially after you are gone. In fact, you may even receive a discount if you select a yearly premium payment.
Ask yourself: If I died tomorrow, who would be there to help my family pay the mortgage, send my children to college, or cover the costs of my daughter's wedding? Without your income to support the family and others who depend on you, how would your loved ones get by and pay daily expenses?
A tax refund check, if used to purchase life insurance coverage, can help protect your family for years to come. It may not be as fun or exciting as a family vacation, or a gift to yourself, but can you bring you satisfaction and peace of mind.
Term Life Insurance is meant to help provide financial support for your spouse, children, or other loved ones whom you designate in the event of your death for a specified period of time, or "term." Typically, the term covered by the insurance ranges from 10 to 30 years and you can pick the length of time you will be covered.
Another benefit of Term Life Insurance is that it is generally less expensive than whole life insurance or Permanent Life Insurance. Whether you choose a term life insurance policy, a universal life policy, or accidental death coverage, using your tax refund to pay for insurance coverage just makes good sense.
* "2018 Insurance Barometer Study"; Life Happens and LIMRA
1. All companies mentioned, their financial professionals and other representatives are not authorized to give legal, tax or accounting advice. For advice concerning your individual circumstances, consult a professional attorney, tax advisor or accountant.