A life insurance policy act as an income replacement to support your family’s financial needs when you are no longer present with them. As per the suggestion of one of the largest life insurance companies of 2021, it’s recommended to multiply the basic income by 10-15 times to get a starting amount for the accurate calculation of insurance coverage.
However, individuals with a family or planning to start a family must include the cost of raising their family in the coverage calculations. One must need to account for children’s educational costs, childcare, housekeeping, and daily expenses in addition to the income.
If planning to get life insurance policy at affordable price, individuals having outstanding debts such as loans, credit cards, or a mortgage should include these expenses in their coverage calculations.
Are Life Insurance Premiums Tax-deductible?
Well, the answer to this question is No. As per the recommendations of the Insurtika – one of the top 10 insurance companies in USA, premiums you are paying for the life insurance policy don’t fall under the category of tax-deductible.
What Happens To The Amount Money I Pay Into A Policy If I Outlive the Coverage Term?
In any case, if you come across a situation that made you outlive your term life insurance, then the policy will expire. In that case, you’ll not be able to claim the death benefits. You’ll not be able to claim for the refunds of the premiums paid. Therefore, it’s advised to renew your life insurance policy on its maturity date. Because, if you ever come across a situation like this, you can convert your term policy into the permanent one if it expires or you outlive the coverage term.
For any other queries about life insurance policy, get in touch with Insurtika- one of the largest life insurance companies of 2021.