Why you should use your tax refund for life insurance
Six reasons why life insurance is the ultimate purchase for those receiving a refund this year
When you file your taxes on or before April 15, there’s a good chance you’re getting a refund. According to the IRS, 75% of American taxpayers receive money back, with the average payment being around $3,000. Needless to say, we’re not telling you this just to make conversation — we have a good idea of what you should spend that money on: life insurance.
Hear us out: If you dedicate this year’s tax refund to life insurance, it should be enough to pay the monthly premium for years to come (which means you could spend next year’s refund on something else if you really want to). That alone should be sufficient motivation to spend your tax refund on a term life insurance policy, but in case you need further persuading, here are six other excellent reasons.
In this article:
You won’t feel it
For most of us, a tax refund feels like free money. You don’t budget around it. And your taxes were taken out before you were paid — in a sense, the money was never really yours in the first place. Therefore, if you put your tax return towards life insurance you won’t even notice you spent it — how can you miss money you never had?
This is true no matter what term length you choose, even up to 20 or 30 years. That’s because, with Haven Life’s low rates, a 25-year-old woman in excellent health can buy a 25-year, $500,000 policy, for $19.15 a month. That’s $230 a year — way less than that average refund of $3,000.
This year it will be hard to spend your refund on fun
Many people use their tax refund to treat themselves and/ or their loved ones to something special. Perhaps you were thinking of spending the money on a trip, or splurging at an expensive restaurant, or getting front-row seats at a concert, play or ballgame. Well, inflation means each of those fleeting pleasures might be outside your household budget.
Why not spend the money on something less ephemeral, something for the long term, like life insurance?
Also, life insurance is fun
OK, we know it sounds dubious, but what is fun, fundamentally? It’s being carefree, relaxed, entirely devoid of worries. That’s how it feels when you have life insurance, because you’re free from the daily worry of how your family would manage without you if the worst should happen. Viewed that way, buying life insurance is practically a leisure activity.
We should also mention that because very, very few people consider a life insurance medical exam to be “fun,” Haven Life also offers Haven Simple, a no-medical-exam-required term life insurance policy. The tradeoff is that policies are limited to $1 million or less (still enough for many people), and that you’ll pay a slightly higher monthly premium because we’ll know less about your health.
Which reminds us: Be truthful on your application, or you risk the non-issuance of policy or even non-payment of policy. And that would be no fun at all.
It’ll save you an argument
If you and your spouse file your taxes jointly, it can be hard to decide how much of the refund is yours and how much is theirs.
Do you earn more? Maybe you think you’re entitled to more of the money.
Does your partner do most of the childcare? Well, perhaps they deserve more cash for themselves, since their labor is usually unpaid.
Who withheld the most? This conversation could be endless.
This year, skip that contentious discussion and buy something for both of you: whether you insure your life, your partner’s or both, a life insurance policy benefits the whole family. It’s a true joint purchase.
It’s a way to supersize your tax return
Perhaps you were hoping for a bigger refund this year. Well, if you really want your check to be worth more than face value, consider buying life insurance from Haven Life insurance agency. For $29.99 a month, a healthy 30-year-old man can get $500,000 of life insurance coverage for 30 years. Now that makes your refund seem worthwhile.
Bonus: Each policy is issued by either the Massachusetts Mutual Life Insurance Company, which has more than a century and a half of experience — or 50 years more than the United States has even had an income tax — or its subsidiary, C.M. Life.
Worst comes to worst, you’ll beat the system
When you buy life insurance, you have coverage in place and hope to never use it. But if the worst should happen, and your family ends up getting the death benefit from your policy, the money will go to them tax-free. If you’ve paid for life insurance with your tax refund, it’s almost like the money from your policy is tax-free twice — a fine way to stick it to the powers that be with your final act.
About Michael DavisRead more by Michael Davis
Our editorial policy
Haven Life is a customer-centric life insurance agency that’s backed and wholly owned by Massachusetts Mutual Life Insurance Company (MassMutual). We believe navigating decisions about life insurance, your personal finances and overall wellness can be refreshingly simple.
Our editorial policy
Haven Life is a customer centric life insurance agency that’s backed and wholly owned by Massachusetts Mutual Life Insurance Company (MassMutual). We believe navigating decisions about life insurance, your personal finances and overall wellness can be refreshingly simple.
Our content is created for educational purposes only. Haven Life does not endorse the companies, products, services or strategies discussed here, but we hope they can make your life a little less hard if they are a fit for your situation.
Haven Life is not authorized to give tax, legal or investment advice. This material is not intended to provide, and should not be relied on for tax, legal, or investment advice. Individuals are encouraged to seed advice from their own tax or legal counsel.
Haven Term is a Term Life Insurance Policy (DTC and ICC17DTC in certain states, including NC) issued by Massachusetts Mutual Life Insurance Company (MassMutual), Springfield, MA 01111-0001 and offered exclusively through Haven Life Insurance Agency, LLC. In NY, Haven Term is DTC-NY 1017. In CA, Haven Term is DTC-CA 042017. Haven Term Simplified is a Simplified Issue Term Life Insurance Policy (ICC19PCM-SI 0819 in certain states, including NC) issued by the C.M. Life Insurance Company, Enfield, CT 06082. Policy and rider form numbers and features may vary by state and may not be available in all states. Our Agency license number in California is OK71922 and in Arkansas 100139527.
MassMutual is rated by A.M. Best Company as A++ (Superior; Top category of 15). The rating is as of Aril 1, 2020 and is subject to change. MassMutual has received different ratings from other rating agencies.
Haven Life Plus (Plus) is the marketing name for the Plus rider, which is included as part of the Haven Term policy and offers access to additional services and benefits at no cost or at a discount. The rider is not available in every state and is subject to change at any time. Neither Haven Life nor MassMutual are responsible for the provision of the benefits and services made accessible under the Plus Rider, which are provided by third party vendors (partners). For more information about Haven Life Plus, please visit: https://havenlife.com/plus
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Jun 8, 2023
Applied Sunday, Approved Monday…
I filled out the application on Sunday afternoon, and was fully approved before noon on Monday. I was initially told that I would need a medical exam, but in the process, it was determined that I didn’t actually need a medical exam to be approved. So, this was a welcome surprise. Also, the initial quote I was given (before completing the application) was only about $15 off from the final approved premium. The Haven Team communicated with me regularly thoughout the application process and promptly answered my questions. Overall, this was an extremely smooth, efficient, and pleasant experience. My family and I are thrilled to have this affordable policy that will last 30 years, onto my 70s. Thank you, Haven!
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Jun 7, 2023
Easy application process and great…
Easy application process and great rates compared to other insurance companies I considered. The health screening portion was a bit long and I kept getting follow up questions for medical history related to my wife and not myself.
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Jun 1, 2023
Easy to apply
Easy to apply I just got approved last week so haven't had to make any claims or anything like that (as this is a life insurance policy, guess that's a good thing lol). But what put Haven Life at the top of my list was their intuitive website and easy application process. All done online and then the physical exam was done in my home! Very easy process.
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May 25, 2023
There was truly no medical exam for…
There was truly no medical exam for their term life insurance. The customer service was responsive and helpful. The price was comparable to another company with the same terms.
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May 11, 2023
Wonderful company!! I definitely recommend Haven life!! Awesome at finding the best coverage for me! Great coverage that is affordable!! Glad I listened to the recommendation that was given to me about this company
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