Reducing Your Tax Burden Through Life Insurance

• May 26, 2019
• LUTAKOME
• no comments

In a country where new taxes are being introduced on every investment, I would like to share with you how the life-insurance industry can create a tax haven for the subscribers.

Like I said in my previous article “can insurance make you rich?” Life insurance in not necessarily an investment but rather an optional safety measure taken up by those who dread going back to square one should the unexpected happen. Over the past few months many have embraced life insurance mainly as a tool to provide for the future.

Whether its for education of your children, providing a decent funeral, or providing an income for your loved one, it’s important to note that the agreed amount of money is paid as a lump sum without any taxation which we normally see with other forms future planning.

Whichever way you look at it, if you bought shares, bought treasury bills, constructed rentals, bought land for sale, whatever income you recover from these will be subjected to a certain form of tax.

If you are looking for a way to keep your tax bill down legitimately, it’s high time you added a life insurance plan to your financial planning cycle.