Blog Layout

2025 IRS Changes That Could Impact You or Your Family

December 10, 2024

As we approach 2025, it’s important to understand how adjusted tax limits and deductions could influence your financial plans. With new inflation-based updates, your budget and strategies might need some fine-tuning with regard to budgeting, saving, and protecting yourself with insurance. Here’s a simplified overview of key changes along with some tips to ensure you’re ready for the upcoming tax year.


Standard Deductions


The standard deduction is increasing slightly:


  • Single filers: $15,000 (up $400).
  • Married couples filing jointly: $30,000 (up $800).
  • Heads of household: $22,500 (up $600).


These adjustments could reduce your taxable income, so consider how they fit into your overall tax planning.


Marginal Tax Rates


Tax brackets remain the same, but thresholds for each rate are slightly higher. For example, the top rate of 37% applies to single filers earning over $626,350 or married couples earning over $751,600. Other brackets are organized as follows:


  • 35% for incomes over $250,525, or $501,050 for married couples filing jointly
  • 32% for incomes over $197,300, or $394,600 for married couples filing jointly
  • 24% for incomes over $103,350, or $206,700 for married couples filing jointly
  • 22% for incomes over $48,475, or $96,950 for married couples filing jointly
  • 12% for incomes over $11,925, or $23,850 for married couples filing jointly
  • 10% for incomes $11,925 or less, or $23,850 or less for married couples filing jointly


Review where your income falls to anticipate potential tax obligations.


Flexible Spending Accounts (FSAs)


The contribution limit for health FSAs increases to $3,300, with a carryover limit of $660. If you use an FSA, adjust your contributions to take advantage of these higher limits.


Estate and Gift Tax


The estate tax exclusion increases to $13,990,000, and the annual gift tax exclusion rises to $19,000. If you’re planning estate gifts, this may present more opportunities for tax-efficient giving.


What to Do Next


  • Update Your Budget: Reflect these changes in your financial plans, including savings, retirement contributions, and tax withholding.
  • Review Insurance: Adjust your life and health insurance coverage to match your updated budget and tax outlook.
  • Plan Strategically: Consult with a tax professional to ensure you’re making the most of these adjustments.


By staying informed and proactive, you can navigate these updates and keep your financial goals on track for 2025. For information on your insurance policies in particular, contact us so that we can help you evaluate your current strategies and make any necessary adjustments. 

The Benefits of Hybrid Life and Long-Term Care Insurance Policies

March 18, 2025
Planning for both future healthcare needs and financial security can be challenging. A hybrid life and long-term care (LTC) insurance policy offers a unique solution by combining life insurance benefits with coverage for long-term care expenses. Depending on exact needs and circumstances, this type of policy might be a smart choice for retirees and their families. What Is Hybrid Life and Long-Term Care Insurance? Hybrid policies blend life insurance coverage with long-term care benefits, providing financial support whether you need extended care during your lifetime or leave behind a death benefit for your beneficiaries. Unlike traditional long-term care insurance, which operates on a "use it or lose it" basis, hybrid policies ensure that your investment isn’t wasted if you never need long-term care. Key Benefits of Hybrid Policies Dual Protection – These policies provide coverage for both long-term care costs and life insurance payouts, ensuring that funds are used efficiently. Guaranteed Benefits – If long-term care is not needed, your loved ones will still receive a death benefit payout. Premium Stability – Traditional LTC insurance premiums can rise unpredictably, but hybrid policies often have fixed or limited payment periods. Flexible Use of Funds – Policyholders can use long-term care benefits for various needs, including home care, assisted living, or nursing home care. Potential Tax Advantages – Benefits used for qualified long-term care expenses are often tax-free, providing additional financial relief. Is a Hybrid Policy Right for You? A hybrid life and LTC policy is ideal for those who: Want to ensure their long-term care needs are covered while still leaving an inheritance. Prefer predictable premiums without the risk of losing their investment if care isn’t needed. Are concerned about rising healthcare costs in retirement. Have funds available for a lump-sum or limited-time premium payment. Plan for Your Future Today Choosing the right insurance policy is crucial for securing your financial future and protecting your loved ones. If you’re interested in learning more about hybrid life and long-term care insurance, contact us for expert guidance on finding the best coverage for your needs.

Burial Insurance vs. Traditional Life Insurance: Which Do You Need?

March 11, 2025
When planning for the future, many people consider life insurance to ensure their loved ones are financially protected after they pass away. However, not all life insurance policies serve the same purpose. Two common types are burial insurance and traditional life insurance, and understanding the differences can help you make the right choice for your needs. What Is Burial Insurance? Burial insurance, also known as final expense insurance, is a type of insurance policy designed specifically to cover funeral and burial costs. Policies typically range from $5,000 to $25,000, ensuring that expenses such as cremation, a memorial service, or a casket are paid for without placing a financial burden on family members. While burial insurance provides peace of mind for covering end-of-life expenses, it has limited benefits and does not offer financial security beyond funeral costs. It won't help cover other expenses like: Medical bills left behind Living expenses for surviving family members Mortgage or debt payments Replacement income for dependents What Is Traditional Life Insurance? Traditional life insurance, which includes term life and whole life policies, offers a broader financial safety net for beneficiaries. These policies provide a larger death benefit, often starting at $100,000 or more, which can help with: Paying off outstanding medical and credit card debt Replacing lost income for surviving spouses or children Funding education costs for children or grandchildren Covering long-term living expenses Unlike burial insurance, traditional life insurance is meant to provide lasting financial protection for your family rather than just covering funeral costs. Which One Do You Need? The best option depends on your financial situation and what you want your insurance policy to accomplish. If your primary concern is ensuring your funeral and burial costs are covered without burdening your loved ones, burial insurance may be sufficient. If you want to protect your family’s financial future, cover major expenses, and replace lost income, a traditional life insurance policy is the better choice. In some cases, individuals choose to have both types of policies—burial insurance for final expenses and traditional life insurance for broader financial protection.
More Posts
Share by: