Use your tax refund to pay for your Life Insurance Policy Annually

Article by Denise Mancini

Every year, the average American receives around 00 in tax rebates (checks from the IRS with advance tax paid by you over the amount that you owe the IRS). With President Obama’s new stimulus tax breaks, this amount is likely to be higher in the coming years.The average American treats the tax rebate check as free ‘spend’ money, not realizing that it’s his or her ‘forced savings’ money that the government is paying back. So instead of blowing it away, how about using it in more sensible, lasting ways? The most sensible thing you can do is pay for your life insurance with your tax refund.Why spend your tax rebate on life insurance?Think about it. The average American’s life insurance is less than adequate to deal with life’s emergencies. Toss in the recession and you have a situation where many have stopped payments on their life insurance policies. Some others have put off buying the much required, additional insurance because it is one of the first things to get struck off a home budget when money gets tight. On the contrary, life insurance is so vital to your family that financial distress should always be sorted out without touching your life insurance plan. Sometimes, this advice is easier said than done. However, put your peace of mind and the comfort of your family ahead of everything else.What would happen to your family if you died? Even family members who are financially independent will have additional expenses after your death because they will have to make do without your salary to run the household, repay outstanding mortgage payments, the unpaid amount on your credit cards, etc. If you take care of certain tasks such as doing the household accounts, taking care of tax matters, etc currently, your spouse would have to hire these services after your death. Without life insurance, your family would be thrown off balance in so many ways.Did you know that even bankruptcy laws exempt your life insurance policy because it affects your family’s interests? That’s how important your life insurance is. Simply use your tax rebate to pay for your life insurance annual charges, and it’s almost as if you got a free life insurance policy.Choose term life insurance instead of whole lifeWhen you buy life insurance with your annual tax rebates, opt for term life insurance because it is affordable, and the average tax rebate check can adequately pay the whole year’s premiums. Remember term life insurance rates can be guaranteed to remain even for the duration of the term, while your tax rebate check amounts may fluctuate. Term life is the cheapest form of life insurance, so even if your tax rebate goes down in any year, you can easily pay for your term life insurance. More importantly, shop around online, in order to qualify for the best term life rate class for your particular situation. Online life insurance agency websites offer you a choice of low-cost policies from reputed companies. If you find a really economical deal, you may not even end up spending your entire tax refund on term life insurance. With the money you save on low cost term life insurance, you will even be able to spend the rest of your tax rebate on a treat for yourself, or opt to pay off your bills – the choice is yours!TipsWhen you use your tax rebate check to pay for life insurance, pay your premiums for the full year. Apart from being the sensible thing to do, it will also save you more money on your premiums because paying the full year’s premium in one lump sum will work out cheaper than monthly payments. Once you start paying for life insurance with your tax rebate, be diligent to continue it. Do some tax planning so that your next year’s tax rebate check is likely to contain enough to pay for next year’s premiums on your life insurance. Any money left over, is of course yours, to spend as you wish. AccuQuote is a leader in providing term insurance quotes to people across the United States. In 1986 it began operating with a single goal: to make the process of buying term life insurance as easy as possible for its customers. Their experienced professionals consistently deliver the low cost life insurance by comparing thousands of life insurance policies from dozens of top-rated carriers.

About the Author

Manager of public relations and marketing communications for AccuQuote. In addition to overseeing all corporate media relations, internal executive and employee communications, I plays a key role in the overall content

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