How Income Insurance Can Help You If Your Gambling Debts Become Too Much for You

When exploring how income insurance can help you if your gambling debts become too much for you to handle, it was an unclear and slippery slope to tread at best. There apparently are some situations in which an income insurance plan may be able to help with gambling debts, but none of them are absolutely guaranteed in the policies. Also each case is subject to the individual circumstances and how the insurance company views the claim. So be sure you seek out sound advice when dealing with your personal gambling debts. By doing this the best method is usually clearer after you evaluate your income with a professional.

Here is the problem in brief, all gambling winnings are taxable and therefore must be reported as part of your yearly tax return. This includes anything won from state lotteries, local raffles, horse races, dog races, betting of any kind, and also winnings from casinos. This is true for all cash winnings and the market value of prize winnings like cars, luxury items and trips. There is a requirement that the payer issue a IRS Form W-2G in most cases. All gambling winnings must be reported no matter what portion is subject to withholdings.

This seems to be the loophole for some income insurance and certain funeral plans that allow for gambling debts to be possible claims filed with their company. There appear to be cases where the gambling debts are argued to be in the arena of a disability and others that they are lumped into the greater debt pile in the case of seniors who have built up substantial debts. Unfortunately even with these cases occasionally being upheld in court proceedings, there is not guarantee that such claims will or have to be honored by the insurance company. Income insurance and family based funeral plans may have carefully written clauses within their policies that given them a lot of leverage to interpret what is a legitmate claim. This will be used as efficiently as possible by the insurance company to their advantage.

When and if income insurance can help you out of your gambling debts is at best questionable. If your gambling debts become too much for you to handle, the best advice is to seek serious debt consolidation and counseling. Then begin paying off your debts with controlled spending on your part. Income insurance may not be the best option if you have a serious gambling debt problem. This is something the individual must evaluate for themselves, but in any situation you need to seek sound advice before assuming you will be able to write off your debts through income insurance, through your taxes or by filing for bankruptcy.