January is a time to get your life balanced. Life can be overwhelming, especially when juggling work, health, and free time with your friends & family. Balancing your finances is an important part of living a healthy life. This can all be overwhelming and it can make you forget about other things in life like life insurance. When thinking about buying life insurance, you should think about the benefits you will receive from purchasing a plan. There are amazing tax benefits. In addition to protecting your dependents from financial hardship, life insurance policies are shielded from taxation under most circumstances.
Increases in cash value. Permanent or “cash value” life insurance policies are designed to increase in value through investments. The increase in value isn’t counted as income, and is exempt from taxation.
Lump-sum payments. Permanent life insurance policyholders have the ability to surrender their policies for lump-sum payments. If a lump sum is less than the money you put into the policy, it’s not taxable.
Investment dividends. Mutual insurance companies may return money to policyholders as dividends. These policyholders can’t be taxed until the amount exceeds what the insured has paid out in premiums.
Payments to a spouse. Life insurance payments to a spouse typically aren’t subject to federal income taxes or estate taxes.
Why is Get A Balanced Life Month called such a thing? Well, seeing as how it starts near the beginning of a new year, we would say that Get A Balanced Life Month is for those hoping for a new start to get their lives into some sort of order and balance, to relieve the stresses of everyday life. We know what that’s like. We have all been there in one way or another, trying to balance something out to make it work so we have room for our personal life.