A. There are 6 important benefits of a permanent life insurance policy, we will discuss each of them in this mini-blog series.
1. Income Tax Exemption Benefit
The single biggest benefit in the Federal tax code is the income tax exemption for life insurance.
When an insurance company sends out the check with a large amount to the beneficiary of a policy when the insured passed away, there is no income tax to pay for the receiver when receiving such a large amount of money, you can't find such a benefit anywhere else!
Because of this huge benefit, life insurance, especially permanent life insurance, should be a bedrock of any serious financial, retirement or estate plan.
Besides the death benefit, there are other important benefits of permanent life insurance. In our next blog post, we will discuss why Life Insurance is a good asset, while the other retirement products are "bad" assets.