Did you know you can sell all or a portion of a life insurance policy, even term insurance?
(4 minute read)
The CARES Act
The Coronavirus Aid, Relief, and Economic Security (CARES) Act provided expeditious economic assistance to American families, workers, and small businesses as a way to sustain millions of jobs across America. When former President Donald Trump signed off on the CARES Act, eligible families received Economic Impact Payments of up to $1,200 per adult for individuals whose income was less than $99,000 and $500 per underaged child.
Following the first round of stimulus payments, the relief bill provided individuals with a second round of payments similar to the refundable tax credits included in the CARES Act. The bill provides a $600 refundable tax credit for individuals ($1,200 for taxpayers filing jointly). In addition, taxpayers with qualifying children will receive $600 for each child. Closely resembling the CARES Act, the relief has a limit of an adjusted gross income of $75,000 for single households, $112,500 for heads of household tax filing status, and $150,000 for jointly-filed taxpayers.
Additionally, the CARES Act provides accessibility to telehealth appointments for Medicare recipients. This prevents seniors with pre existing conditions from having to go to hospitals and small clinics for route care that could happen virtually instead of physically. However, since then, more conversations concerning the CARES Act––and its potential benefits to the American people––have commenced and concluded while other conversations are still being reviewed.
The American Rescue Plan
In the second week of February 2021, the Biden Administration is making plans to increase the minimum wage to $15 an hour within the next four years and provide another round of stimulus payments to be released to the American people. The American Rescue Plan would involve sending $1400 to select adult and child dependents who qualify as well as individuals who have earned up to $75,000 or couples who have made up to $150,000. Your economic eligibility would be based on 2019 or 2020 taxes.
Additionally, The American Rescue Plan aims to:
- Establish a national vaccination program that stabilizes COVID-19 in order to safely reopen schools. The Biden Administration plans to do this by setting up vaccination sites across communities nationwide to meet President Biden’s goal of safely reopening K-8 schools within the first 100 days of his inauguration.
- Deliver relief to working families with a sense of urgency by sending $1,400 checks per person to homes across America, provide housing assistance, create an equitable and accessible healthcare and childcare system, and extend the current limit on unemployment insurance.
- Provide support for small businesses and essential workers, with special attention to those that are owned and operated by business owners of color, first responders, public transit employees, and the vast array of essential workers that make our society more efficient.
What else does this mean?
The Ways and Means committee, the government body that is charged with making financial recommendations for government spending, also plans to cover the following bases:
- Current unemployment benefits would be extended and scheduled to expire in mid-March. The new relief bill would increase the weekly federal benefit to $400 (originally $300) and would continue through August. Self-employed workers would also be eligible for this extension.
- The annual child credit would increase to $3,600 a year for children, ages 5 and younger and $3,000 for ages 6 and up. The duration of monthly installments would span from July to December of 2021.
- The earned income tax credit would also increase for low-wage workers and the dependent care tax credit would increase for dependent children and adults.
We hope that this information proves useful for you and your loved ones as we navigate through a continued pandemic with new administration.
Did you know you can sell all or a portion of a life insurance policy, even term insurance? Selling an unwanted life insurance policy is no different than selling your car, home or any other valuable asset that will create immediate cash. Contact us today to learn more.
Life Settlement Advisors