Tax Season: The Perfect Time to Consider Life Insurance

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Tax season is that wonderful time of the year when people use their extra cash to splurge on things like vacations, homes, and perhaps sexiest of all: LIFE INSURANCE!

Life insurance specialist Deana Lemmon told Gant Daily that tax returns are great for starting or adding to your life insurance policy.

“Life insurance is much misunderstood by many people,” she said. “If you review your life insurance options with the right person, you can maximize your tax refund’s potential to secure your quality of life and that of your family.”

The Basics of Tax Season

Whether you’re just learning to adult or you need a little refresher (we all do), here are the basics of tax season:

  • Tax season is between Jan. 1 and April 15 each year
  • Individual taxpayers and businesses all prepare financial statements from the previous year
  • Forms are submitted, known as a “tax return”

Why Investing in Life Insurance Pays Off

There are a few scenarios Lemmon details that convey the usefulness of a stable life insurance policy. These include:

  • Mortgage holders with a good term life insurance policy ensure their home is protected
  • Divorcing parents with life insurance can ensure support payments last for years
  • Stay-at-home parents need life insurance to ensure their child is always taken care of

Lemmon goes on to clarify, “A good life insurance policy can be short-term to cover a mortgage, it can be established to protect the interests of a special-needs child who will need financial support after you are gone or it can be used as an effective savings vehicle for the long-term.”

Your Tax Return Could Cover Entire Year’s Premiums

Another promising fact from Policy Genius makes the idea of using your tax return to pay your life insurance premium even more appealing:

“Based on national averages, there’s a good chance your tax refund will more than pay for your life insurance premiums every year. If you’re on a budget and you’ve been holding off taking out a policy to protect your family, try this strategy to get protection without really feeling it in your pocket.”

Look closely at your tax return –– it may be tempting to spend it on a shiny new device, but why not just take care of your life insurance for the year instead?