Will 2014 Tax Changes Affect Your Life Insurance’s Benefit?

2014 bring significant tax changes. Some taxes will be reinstalled, while others are brand new. Although, no doubt, tax changes will affect directly or indirectly every citizen, some have wondered whether the new tax changes will have an impact on their life insurance plans; mainly if tax changes will affect the life insurance benefit.

TaxesComparing online insurance quotes will definitely not be affected by tax changes as most of them do not affect life insurance. In other words, you will not have to pay for life insurance as there are no extra taxes that could burden agencies.

What taxes are new?

The IRS has introduced several taxes that affect health insurance plans, but none affect life insurance.  Here are some of the most important changes:

  • Failure to have minimum health coverage. If you do not have adequate health insurance, you may face some penalties according to the new Obamacare tax laws.
  • Premium assistance for buying health insurance. Although you will have to pay a tax for not having health coverage, the good news is that the government will help you pay for the premiums, if you cannot afford the high expenses.
  • Tax-free canceled mortgage debts. Normally, cancelled mortgage debt is taxed, but a new tax exemption may allow clients to cancel their mortgage debt without having to pay taxes.

How will these taxes affect life insurance?

You do not have to worry about life coverage. Instead, you should focus more on health insurance. As you can see, the government has taken steps to make sure that every citizen has health coverage.

Your life insurance premiums will remain the same throughout the entire duration of your policy. Neither can the death benefit be changed, unless you wish to do so. Life insurance proceedings are not taxable.

If you do not have a life insurance plan, it is time to search for one. This spring you will find great offers! Visit us for more information!