Low Tax Plans
Of the three main types of life insurance, term life plans may have the worst tax implications for your loved ones. If you are looking for a tax-deferred plan, stick with a whole life or universal plan. Then you won’t have to pay a large lump sum out all at once.
Taxes are one of the things people tend to forget about when it comes to financial planning. However, when you plan to receive one amount and end up with something totally different or owe taxes at the end of the year, it can be an unpleasant surprise. Be sure to discuss this matter with your agent so you can plan ahead.
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