By Deana Lemmon, LTCP
Life & Senior Needs Specialist
Tax season is a good time of year to consider your options for improving your quality of life.
According to Deana Lemmon, long-term care professional and life insurance specialist at Sarvey Insurance, “If they qualify for a tax refund, many people use the extra funds to improve their homes, purchase a better vehicle or add to their long-term savings.”
Lemmon adds, “one affordable way to enhance your financial security and to protect your family’s quality of life is to review your life insurance options with a licensed agent.” Life insurance is something that can be customized to your needs and to your lifestyle.
Lemmon suggests, “A good life insurance policy can be short-term to cover a mortgage, it can be established to protect the interests of a special-needs child who will need financial support after you are gone or it can be used as an effective savings vehicle for the long-term.”
About 70 percent of Americans consider life insurance a necessity for themselves; yet, about 40 percent of Americans have no life insurance to speak of to help protect their quality of life or that of their family.
Lemmon has identified a few life insurance options that may help in specific life situations. Before we review her list, Lemmon reminds us, “life insurance should always be customized to your life and to your needs.”
- Do you have a mortgage? – Lemmon recommends term life insurance to match the years that your mortgage will be in force. She states, “Your home is your legacy; while you might make minor improvements to it with a tax refund, protecting its full value in the event of your death will make certain that your home remains a part of your estate.”
- Divorced parents – Lemmon again recommends term life insurance to help in this scenario. She says, “Term life can cover the years of support payments that will help provide security for your child.”
- Stay-At-Home parent – “If you are a Stay-At-Home parent, what price would you place on your child care,” Lemmon continued, saying: “I recommend term life insurance and, as a long-term savings option for the child, whole or universal life options.” A parent’s time is valuable and so is daycare in the absence of said parent.
- Do you want to provide an inheritance? – Whole life insurance is a stable investment option for those who would seek to save their tax refund in creation of a legacy. Lemmon states, “Whole life insurance builds cash value and can be left to one or several beneficiaries; it’s a great way to really extend the value of a tax refund.”
- Investors who need new retirement vehicles – Life insurance, especially whole and other types of permanent life insurance according to Lemmon, can build cash value. “Life insurance can provide you with customized options for enhancing your retirement portfolio,” Lemmon states, adding that: “life insurance protects your quality of life, your legacy, and can make you more money.”
As you consider your options for getting the most out of your tax refund this year, it may help to sit down with a life insurance professional like Lemmon to discuss your options.
“Life insurance is much misunderstood by many people,” Lemmon declares, adding that: “if you review your life insurance options with the right person, you can maximize your tax refund’s potential to secure your quality of life and that of your family.”