Putting Your Tax Refund To Good Use
February 4, 2021
If you are one of the 100 million or so Americans that is anticipating a tax refund this year, you may already have it earmarked for something such as a family vacation, to pay down debt or some home improvement projects. However, if your plans don't quite pan out, or you were simply planning to save your refund, there may be some ways that you can get the most out of your refund other than putting it into your savings account.
Here are a few ideas from the GBU Sales Team on possible uses for the average $2,500 US federal tax refund to fund life insurance or annuity products so that this year's refund can help to secure funds for future expenses or secure a legacy for you or your family.
Three Ways To Grow Your Tax Refund
- Whole Life Protection For A Child
With your $2,500 refund you can purchase a whole life insurance policy with a face value up to $30,000* for that special five-year-old in your life. The-policy will grow in cash value throughout that child's life and will be available to borrow against for emergency expenses or education. Adding a Guaranteed Purchase Option rider means that child will have opportunities to get additional life insurance at various points throughout life without a medical exam. - Saving For College
You can start a Coverdell Education Savings Account for one or several children in your life. This savings program allows education funds to grow tax free until they are needed. This account can be used for higher education as well as qualifying K–12education expenses. You can continue to contribute to this account each year, though certain maximum contributions apply. - Funding A Legacy
If you hope to leave a legacy donation to a favorite charity, a tax refund is a good way to secure your gift. You can purchase a single premium whole life policy with your $2,500 refund that could allow up to $5,000*upon your passing to be left to a charitable organization designated as a beneficiary on your policy.Plus there may be additional tax savings for your future charitable gift.**
*Premiums may differ based on age, gender and health.
**Be sure to consult a tax expert based on your specific situation
As we move into the second quarter of another exciting year, I want to take a moment to reflect on our accomplishments and share some of the new initiatives we are implementing in the realms of sales, marketing and community engagement. Over the past year, GBU Life has reached significant milestones thanks to the dedication and hard work of our team and the trust and support of our members. Our sales department has exceeded targets, and we have expanded our reach to more communities than ever before. We have launched several successful marketing campaigns that have not only increased our visibility but have also strengthened our brand's presence in the industry. For this year, our focus will be educating potential new members on the importance of securing their financial futures through life insurance and annuity products while serving their communities as part of our great Society. Looking ahead, we are committed to enhancing our sales strategies to better serve you. We are introducing some tools for our agents to enhance our products. One new tool is our Defined Benefit Annuity program which combines the Future Flex Fixed Index Annuity (FIA) with a software tool that can help determine retirement savings needs and break them down into contributions over time to help you meet your retirement goals. Be sure to keep in touch with your GBU agent to review your plans and products to see how adding an FIA to your retirement planning can help boost your savings efforts
GBU members between the ages of three and nine years old can enter their colored page in this year's contest, which is themed Pawprints on My Heart. Three age categories will be judged as follows: Category I: Ages three and four Category II: Ages five and six Category III: Ages seven, eight and nine Entrants may use crayons, colored pencils, markers or watercolor paints. Entries will be accepted through Monday, August 18, 2025, at 11:59 p.m. EST. The picture on the next page can be reproduced, or copies can be obtained by calling the Community Engagement Team at the GBU Home Office (800-765-4428) or by printing the image above. Cash Prizes for Each Category First prize: $75 Second prize: $50 Third prize: $30 How to Enter Send the three- to nine-year-old GBU member's coloring contest entry with their name and address on the colored page to: GBU Life ATTN: Member Benefits 4254 Saw Mill Run Boulevard Pittsburgh, PA 15227-3394. Or email contest@gbu.org with "Coloring Contest Entry” as the subject line. General Information Judges reserve the right to accept or reject any or all entries. Their decisions will be final. Artwork will be handled at the GBU Home Office with the utmost care. GBU reserves the right to reproduce entries for whatever use it wishes, provided proper credit is given. Permission does not include the sale of such work.
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Kick-start your child’s journey to financial success with a whole life policy from GBU Life.