Permanent Life Insurance Rocks
Unless you hate lower taxes, lower investment risk, and generational wealth
Permanent life insurance is a tool that the smart & wealthy utilize to help grow wealth, avoid taxes, diversify risk, and pass down generational wealth.
End of discussion.
Is it the right tool for everyone? No.
Is it the right tool for you? No idea, depends on your wealth, goals, current situation, and timeline.
We will walk through some of the benefits of permanent insurance strategies. Then we will show an example of why all the complaints of permanent life insurance being ‘expensive’ are misplaced.
We can definitively say, that the amount of strategizing that goes into each aspect of a life insurance policy is more than you realize. Each company designs their products for specific use cases and archetypes.
Saying that ‘whole life/permanent insurance is ____’ is equivalent to saying ‘all stocks are _____’. The way the charges are structured, optional riders offered, and features available impact the way the product should be used.
Tax Benefits of Life Insurance
[Note - everyone’s tax situation is different and taxes are subject to change. This is not tax advice, nor are we tax advisors]
Life insurance comes with a host of ways to benefit on taxes.
Rollover tax-deferred accounts (401k/Trad IRA) with 1035 exchanges
Tax-deferred growth of cash values
FIFO (First In First Out) distribution of cash values
Tax-advantaged loans to access money
Income tax-free death benefit