How to Use Tax Returns for Free Life Insurance

Enjoying Retirement

Really…?! Free Life Insurance from my tax returns? Well let us clarify this. Is it really “free” on day one, or am I simply “utilizing” my tax returns in a way that I will eventually pay out twice or thrice fold. Yes, of course, you guessed it, the latter is true, but after all, is anything really free without some reciprocity attached it?

I will share a little secret with you….one that may as well be considered the eighth wonder of the world, when it comes to helping you save for retirement = Whole Life Insurance. Tired of wasting your tax returns on meaningless expenses? Here is an opportunity to “think outside of the box.” We won’t have money in retirement if we do not plan NOW. And life insurance is the answer!

Most people do not realize that there are many forms of life insurance that are available to anyone who is healthy enough and financially able to pay for it. Did you know that you do not have to die to have life insurance payout? A whole life permanent policy will allow a you to essentially “kill two birds with one stone” as the old adage says, by giving you an instant life insurance benefit available to protect your loved ones, but will also allow you to “create your own bank.” That’s right, YOU save money that can grow overtime at a much better rate than what most saving accounts or CD’s in a commercial bank could ever do.

This is how you can protect your family now and save for your retirement later in “one shot”: Use a portion of your tax return to fund a whole life insurance policy with an annual premium that will be due right around the time you get your taxes back each year. You will save a little on the “annualized” premium this way because an annual payment mode is always going to be cheaper than monthly, quarterly, or semi-annual. Each year you will see the cash value in the contract grow. At ANYTIME in the life of the contract you can borrow money out of the contract, pay it back or not, and potentially still have a death benefit available as long as premiums are paid, and the depletion of the cash value, as well as the interest attached to it do not bring that cash value to zero.

Most whole life insurance policies offer “paid-up additions” which can often be surrendered without tax ramifications and without it needing to be “borrowed” from your policy. This also allows for the additional retirement income that I was referring to. In essence, you will more than likely, over time, end up receiving much more cash out of the policy than what you paid in premiums throughout the years, while having had the apparent “FREE” insurance coverage over your working years…which in the long run, didn’t actually cost you anything. Don’t hesitate to call if you want this “FREE” insurance. 

About the author: Kyle McDonald holds FIC, FICF, FSCP® & CLTC designations. His viewpoint on life insurance is simple, “Anyone with a family must have life insurance. In the end, life insurance is for others you care about, not you.” He is ready to help you and your family get the best option available. Contact Kyle today at   1-800-651-1953 or KMcDonald@Pivot.com.