Do you anticipate receiving a tax refund this filing season? According to the IRS, 128,064,000 Americans received a refund in 2021, with an average refund amount of $2,775. If you’re among the group of tax filers getting money back from the IRS, you may be wondering how to make the most of your tax refund. You could reward yourself with a luxury item or a vacation. Or you could meet a pressing financial goal, such as paying off a credit card or purchasing life insurance.
3 reasons purchasing life insurance is one of the best ways to invest your tax return:
1. It’s a smart financial move
Planning for your passing is a difficult subject matter to approach. But purchasing life insurance before getting married or starting a family is a smart financial decision. Plus, the younger you are, the lower the cost. If you pass away later, you’ll be preparing now to potentially help your family’s financial security in the future.
2. You probably won’t have to come out of pocket
Depending on the amount of your tax refund, you could cover your life insurance premiums for years to come. A $500,000 life insurance policy may cost less than a few dollars per day. That investment protects your loved ones when you can’t be there.
3. You’ll have peace of mind.
When you purchase a life insurance policy, you’ll feel better knowing you have helped protect your family if you unexpectedly pass away. Furthermore, having disagreements with your significant other regarding how the refund will be spent could be minimized by making the simple choice to get coverage.
