Tax Benefits and Life Insurance
The topic of life insurance is a scary one. Few of us want to spend time thinking about our mortality. But, getting coverage from our agents at Luebbering Insurance Agency LLC in Jefferson City, MO can provide many advantages to the ones you leave behind. It also has many boons for you while you’re alive. For instance, a life insurance policy can provide tax benefits.
Having a life insurance policy can help you during tax season in Jefferson City, MO, in several ways:
- Your beneficiaries won’t pay income tax on your death benefit. This means they receive the full amount of money they’re entitled to. This is a significant advantage, especially if the death benefit is big.
- The cash value of your policy accumulates on a tax-deferred basis. So, if you have a permanent life insurance policy, you can build up cash value over time. The cash value is the amount of money you can access while alive, either by withdrawing or borrowing from the policy. The government doesn’t tax the growth in cash value as long as the money stays in the policy. This can help you save money on taxes and increase your wealth over time.
- You can access the cash value of the policy. If you withdraw or borrow from your policy’s cash value, you will not have to pay taxes on the money.
As you can see, life insurance has advantages beyond providing financial support to your loved ones after your death. It also has some tax benefits. Contact one of our Luebbering Insurance Agency professionals today to take full advantage of these. You can also check out our website for more information.
