Budgeting | Income Tax | Investment Strategy

Financial Planning

Income Tax

• Income Tax is paid on your gross income.
• If you die, earned income will be replaced by investment income.
• Both earned income and investment income is taxed.
• Therefore, we will ignore tax, as your dependents will pay tax on the investment income which replaces your earned income.

Discount for 2 Policies

• Please note: Two individual life insurance policies on each spouse produces a discount.
• The total premium for both policies is less expensive than a single premium for a joint first to die policy.
• Mortgage insurance sold through banks and trust companies is joint first to die insurance.