Cutting taxes with life insurance!

Proper taxing planning means protecting you assets from taxes during your lifetime as well as after you die. A whole life insurance gives you the possibility to do these two things at once.

How-to-Buy-Life-InsuranceThe main reason we buy life insurance is to provide a financial stable life to our families after we pass away. Life coverage provides a death benefit to the policy’s beneficiaries (whom you are free to designate). The money can be used to supplement for daily needs, to pay for your children’s education or for mortgage loans and to provide a safe retirement for your remaining spouse.

In case you lose your life, your beneficiaries will be able to benefit of the policy’s cash tax-free. No matter how big the benefit is, your family will receive 100% of the sum and they won’t have to pay any income tax for the money they receive. This is a great advantage considering the fact that the IRS usually taxes about 35% of the total value of the assets that your family members can inherit.

The precarious state of the country’s economy calls for a more private initiative. Protecting your investment is much easier through a permanent life insurance plan. Your investment will grow tax deferred as you continue to pay premiums throughout your life time. This can prove to be a very safe savings mechanism, especially if you are having troubles saving money. The cash value can be used as you see fit: it can help provide for your children’s education or you could invest the money.

If you are looking for investment options, have a look at variable universal insurance. This is a permanent life coverage policy which builds cash value by investing into different portfolios. The main advantage is that the reallocation of your funds is not taxable, so you are free re-balance your investments.

A life insurance policy can also cover funeral taxes, which can be up to 10.000$ in some states. This can be a real financial burden for your family. Also, a policy can cover other debt like mortgage loans. Remember that mortgage debt doesn’t disappear after you die. If your remaining family members won’t be able to pay the remaining loan, they may be evicted out of the house.

Life insurance is a great way of protecting your family from financial hardship and protecting your assets from the IRS! Visit our website and we will help you with information and quotes. Visit now and find out how to buy life insurance the proper way. We will also give a good answer to the question: why buy life insurance?