1. In the event of premature death during your working years, the income tax-free death benefit can protect your family, replace income, and complete financial obligations.
2. The policy’s cash value can be used to help supplement the income from your other retirement assets.
1. The life insurance death benefit will generally be received income tax-free by heirs.
2. The life insurance cash values can grow tax-deferred.
3. As long as the policy is not a Modified Endowment Contract (MEC), the client can generally take tax-free withdrawals up to basis out of the policy, and tax-free loans thereafter from the available cash value.
4. Accumulated cash value may be accessed by you or remain in the policy.
In next blogpost, we will discuss 10 things to consider related to the table above.