Here at Bacon Insurance Group in Richmond, VA, there are a few little-known benefits of life insurance that we’ll reveal here.
1. Taxes Don’t Need to Be Paid on the Benefit Amount
The IRS generally doesn’t require beneficiaries to report these benefits as part of their gross income. However, in some situations, it can be considered taxable. Ask your agent or tax consultant about your circumstances.
2. Some Polices Allow for Cash Withdrawals
Whole and universal life insurance allows for withdrawals to be made to borrow against the policy. Some also allow one to get a loan against them, which can come in handy to cover unexpected costs. Keep in mind that both options will reduce your death benefits unless the funds are repaid.
3. Medical Exams Aren’t Always Required to Buy Life Insurance
Many individuals believe that their health issues will prevent them from obtaining a life insurance policy. Several companies require no medical exams whatsoever for guaranteed and simplified issue insurance. Group life insurance through an employer may also not require health exams.
4. You May Already Have Life Insurance and Not Know It
Many employers offer their staff a baseline life insurance policy as an incentive. It may be bundled along with dental, medical, and vision plans. However, it may not be enough, making a supplemental policy necessary.
5. They Come With a Premium Wave-Off Option
You have to make payments on premiums over the tenure of the policy. However, if the policyholder becomes permanently disabled, a rider goes into effect, which sometimes allows premiums to be waived. Contact your provider to see if you qualify for this benefit.
If you want to protect your family’s financial situation after your passing, contact Bacon Insurance Group Richmond, VA, for a custom quote today.
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