Marriage and having children can bring many rewards, including discounts on life insurance premiums. Term life insurance covers you for the life of the policy, and the term should last as long as your dependents need their income. When you tie the knot or remarry, you can enroll in a family health insurance plan, which usually offers discounts because it covers more than one person. You may also be eligible for Medicaid or the Children's Health Insurance Program (CHIP), depending on your income.
If your coverage comes from a previous employer, such as COBRA or retiree coverage, you can decline employer coverage and may be eligible for the tax credit for Marketplace coverage premiums. Family members who qualify for coverage under your personal and family enrollment include your spouse (including a valid common-law marriage) and children under 26. The tax credit for the year's actual premiums will differ from the amount of the advance credit estimated by the Marketplace if your family size or estimated family income at the time of enrollment are different from the family size or household income that you report on your return. At age 18, you can transfer the insurance policy to the child for future coverage. Generally speaking, individuals and families may be eligible for the premium tax credit if their household income during the year represents at least 100 percent, but no more than 400 percent, of the federal poverty line corresponding to their family size. If you apply for the Net Premium Tax Credit (PTC) on Form 1040 or 1040-SR, Annex 3, Line 8, you must file Form 8962 along with your return and declare the net PTC on line 26. In addition to age, life insurance rates vary depending on place of residence, gender, existing health conditions, and possibly other demographic factors.
To apply for a premium tax credit for any tax year in which the APTC was not paid on your behalf, you must file a Form 8962 and attach it to your federal income tax return for the year you applied for the premium tax credit. Your new spouse can apply for FLTCIP coverage within 60 days of your marriage by applying for an abbreviated subscription. The right time to buy life insurance varies from person to person, depending on family and financial circumstances. Paying off current debt is essential, but ceasing to buy life insurance at a young age has a significant economic impact, as does delaying saving for retirement. If you are married or have children, it is worth exploring whether you can get a discount on life insurance premiums.
