Silvia Perez Insurance & Financial
If you don’t have the time for intricate researching, this article talks about useful information for you to understand further the importance of acquiring a life insurance policy.
Why Life Insurance is Essential for You
Life insurance is essential if you have a family that depends on your earnings. When you pass away, this type of policy will guarantee that your relatives are covered — from monthly debt to household expenditures to your children’s future education. One of the popular life insurance policies that most families obtain is the permanent life insurance plan. Unlike term life insurance plan, the permanent life insurance policy has cash value.
Here are tips for you to maximize the utilization of your life insurance cash value:
Employer-paid Life Insurance and Tax
Your employer-provided ‘group term life insurance’ policy doesn’t have to be regarded as income; therefore, it’s not taxed to you. But, when the amount which is being spent by your employer for your plan exceeds $50,000, it generates a taxable income for the “economic value.”
Good to know: You won’t be able to withhold the amount you spend for life insurance coverage on your federal income tax return because it’s a personal expenditure.
Checking Your Contact
The life insurance policy being presented to you must pass the Internal Revenue Service or IRS requirements, and the insurance company must follow the rules and apply the provisions. By the way, IRS is responsible for giving taxpayers the assistance that they need in rectifying instances of inaccurate or falsified tax filings. Through IRS, you can ensure that an insurance contract isn’t really an investment vehicle.
One More Thing Before You Go
There are better ways to secure your future. Protect your family by obtaining a life insurance plan.
At Silvia Perez Insurance & Financial Solutions, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays and we're here to help you out. Learn more about our products and services by calling our agency at (831) 524-8411. You can also request a free quote by CLICKING HERE.