You buy life insurance because you want to do the right thing: protect your family's future financial stability by making sure there is a ready replacement for your income in the event of your death. But you also want to do the right thing and make sure you don't leave your beneficiaries with a heavy tax burden, right? Don't worry: in most cases, the proceeds of your insurance benefit are not taxable.
Life insurance benefits are generally outside of your estate and therefore exempt from inheritance as well as estate transfer taxes. Even with a whole life policy, which is often purchased as part of an investment strategy, the cash value grows without being taxed until you withdraw it. (For that reason, many people who buy a whole life policy wait until they retire, when they move into a lower tax bracket, to withdraw the value.)
The tax-exempt status is just one of the financial advantages of life insurance. Another advantage: some forms of insurance, such as term coverage, are extremely affordable. In fact, you may be able to get a high-quality term policy for a very low cost...even potentially as low as the cost of a cup of cappuccino per day. (And the peace of mind that comes from having insurance is a lot better for your health than the cappuccino is.)
Term life insurance, in particular, is not only affordable but also very easy to get. You can compare rates online...complete a simple application that contains just a few general health-related questions...even make your purchase then download a copy of your policy for your household records. All within minutes. And in most cases, all without a medical examination.
That's right: you can get life insurance with no medical exam. That means no doctor's appointment, no lab tests. That saves time, saves money, and saves you from the hassles and worries of a long application process followed by a long wait for results.
Life insurance benefits are generally outside of your estate and therefore exempt from inheritance as well as estate transfer taxes. Even with a whole life policy, which is often purchased as part of an investment strategy, the cash value grows without being taxed until you withdraw it. (For that reason, many people who buy a whole life policy wait until they retire, when they move into a lower tax bracket, to withdraw the value.)
The tax-exempt status is just one of the financial advantages of life insurance. Another advantage: some forms of insurance, such as term coverage, are extremely affordable. In fact, you may be able to get a high-quality term policy for a very low cost...even potentially as low as the cost of a cup of cappuccino per day. (And the peace of mind that comes from having insurance is a lot better for your health than the cappuccino is.)
Term life insurance, in particular, is not only affordable but also very easy to get. You can compare rates online...complete a simple application that contains just a few general health-related questions...even make your purchase then download a copy of your policy for your household records. All within minutes. And in most cases, all without a medical examination.
That's right: you can get life insurance with no medical exam. That means no doctor's appointment, no lab tests. That saves time, saves money, and saves you from the hassles and worries of a long application process followed by a long wait for results.
No comments:
Post a Comment