By |March 15th, 2016|Categories: Uncategorized|Tags: |

In this world nothing can be said to be certain, except death & taxes. – Benjamin Franklin

A timeless cliche’ which poignantly illustrates the pain we all feel. Taxes, while something which helps a civilized world exist and evolve, hurt. After all, isn’t there something else which you would prefer to do with your money? However in order to enjoy a clean, safe, neighborhood it is something which will all endure.

Death is the oldest certainty we know. Regardless of how ready you may or may not be for eternal slumber, there is sadness and pain–both for yourself and the ones around you.

At Quotes Parade, we believe that there is a single solution which can take away much of the pain in these two things…

Death And Taxes - By Quotes Parade

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While we say this with as much humor as one can muster on the topics: both death and taxes are unavoidable events for which life insurance can be a useful tool.

Death

Over the years, many poetic things have been said about death.  Despite this, losing a loved one is always a hard thing to think about–or plan for.

From a financial planning aspect, death is expensive. The costs associated with a basic funeral can be staggering. Your family can be burdened with having to simultaneously plan a funeral and figure out how to pay for it if a proper plan is not in place. (READ MORE ABOUT FINAL EXPENSE PLANNING HERE)

Life Insurance will eliminate much of the stress on the family by assuring there are adequate funds to handle your final expenses. This includes everything from the costs of a funeral and burial to the paying off of your remaining debt.

One of the other big expenses which follows in the wake of death is inheritance and estate tax.

Taxes

Aside from the “routine” taxes you are accustomed to paying (income, wage, sales, etc.) estate tax could prove to be the biggest tax bill you or your estate have ever encountered–at a rate of 40%!

In 2016 the United States government has set the threshold for federal estate tax at $5.45M. Should your estate have excess of this value (including real estate, investments, business ownership, and other assets) the remaining value will be taxed at 40%. That does not include any additional taxes which may be applied by your State or local government.

By anticipating your tax exposure you can find a way to prevent this taxation to your estate–keeping your hard-earned money with your family.

Next Steps

Life insurance is a crucial part of successfully navigating two of life’s constants: death and taxes. If you are not certain that the plan you are leaving for your family is ironclad, we recommend talking to an expert.

A few quick tips to start the conversation:

  • Understand the total value of your estate. This includes many items which you may not think of, such as; IRA/retirement accounts, company pensions, ownership in a business, real estate, annuities, or stock portfolios.
  • Tabulate your total outstanding debt and think about how it should be handled upon your passing. This includes paying down real estate, paying off educational loans, or even creating a buy-out of your business.
  • Develop a plan for your final wishes and understand the expense.
  • Update your will and make your planning a big part of that document.

Quotes Parade is an independent insurance brokerage dedicated to planning for life’s most complex challenges. With bespoke solutions for life, long term care, disability, and other special risks needs, our focus is on the human element of tough conversations. Contact us and see how we Put The Life Back Into Life Insurance.