The Context
Death Benefit and Cash Accumulation Balance
For many years, especially when the estate tax exemption was low, the focus of estate planning strategies with life insurance often shifted to use the minimum premium payment to achieve maximum death benefit. With the 2017 estate tax exemption at $5.49M for individuals and $10.98M for married couples, the planning pendulum has swung back towards a balance between securing the proper amount of death benefit and the opportunity for cash accumulation in permanent life policies.
Conventional Saving Opportunities Maximized Out
For high income earners, the regular saving vehicles, such as Roth IRa, 401(k), and/or other qualified planning tools have been maximized, it's time to consider additional savings vehicles, such as cash value life insurance that offers the potential to accumulate cash value as another source of income to meet retirement needs.
What are the advantages of cash value life insurances?