How much would I need life insurance and disability to pay out?
friendofambien asked:
Is there a chart or similar info on the Internet, perhaps? I am guessing needs are based on age and the number and age of any children.
Monday, June 29, 2009
What type of income is group term life insurance, when doing an income tax return?
What type of income is group term life insurance, when doing an income tax return?
m s asked:
There are so many types of income, but under which one does it go?
2 Responses to “What type of income is group term life insurance, when doing an income tax return?”
- newjerseyguy [ 17Jun09]
Please clarify – are you saying that you received life insurance proceeds from someone’s death or are you asking if term life insurance premiums that you pay are tax deductible?
- Hank Roitman, EA [ 19Jun09]
If you are referring to code “c” in box 12 of form W-2, it is the cost of group term life insurance in excess of $50,000 of coverage, paid for by the employer. In other words, employers can provide ins. up to $50k; over that and the cost is included in the employee’s income.
The code “C” amount is already included in boxes 1,3& 5 of form W-2 because it is treated as “compensation”, ie wage or salary.
Subscribe to:
Posts (Atom)
First of all you can’t just pick a price. There are alot of types of life and disability insurance. For instance life insurance is a whole different thing from disability insurance. There are many kinds of life insurance plans such as; cash value ins., whole life ins., universal life ins., variable life ins.My best suggestion is to find a local life agent with the knowledge to help you understand what all the difference are. Everything is pretty simple to understand you just have to specify your needs. Everyone has different plans for the future so find a local agent. Right now I would for a Farmers Agent in and not just because I work there Farmers offers alot of great plans for people like you. And every Farmers agent has been trained with the lastest information on needs like yours.
It depends on who depends on your income. Ask a financial planner to calculate your need analysis.
There is a chart just for you. Go to. There are lots of free calculators on that site ad you can see how much insurance you will need and it will help you take in account future earnings and your children.