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5 Reasons To Consider Life Insurance
Posted on July 31, 2009 at 2:32 pm
Filed Under Financial Planning, Insurance Planning, Personal Insurance
Tim Cestnick is a well respected writer and columnist with the Globe and has recently written a great article entitled “Five Reasons to be Nice to Your Insurance Agent”.
Despite the fact that the title of this article comes across as very “Agent Focused”, Tim actually focuses on five great reasons to consider owning life insurance. The five reasons that Tim discusses include:
- Provide for Others
- Cover Final Disbursements
- Provide Equitable or Larger Bequests
- Shelter Income From Tax
- Maintain Business Health
I really enjoyed this article because Tim provides a very “birds eye view” of life insurance and some of it’s core and primary uses overall. The one that really sticks out to me however is point four entitled “Shelter Income From Tax”. After all, we live in a country where we can pay up to 50% of our income back to the Government in the form of taxes, so why wouldn’t we want to explore all of our tax shelter opportunities?
Your Take-Away: Life insurance is a topic that is not easily discussed in general conversation, and rarely ever praised. That said, the basic reason people purchase life insurance is love, and if you’ve ever received a life claim as a result of a loved ones passing, you have likely become a big advocate.
The good news however is that whether you want to purchase life insurance for others or not, it is still very much worth your time and effort to understand how it works and more importantly, how it can save you literally thousands of dollars of tax in a year. Most of us really aren’t aware of these kinds of benefits and how to properly structure life insurance for this purpose, but after looking at the facts and the numbers, you may just find that you’ve piqued your own interest!
Until next time, have a wonderful long weekend!
Chris
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