A permanent life insurance policy can be a great vehicle for you to compound your saved interest as tax-deferred cash value. It’s from this interest that you could then take out a loan or withdrawal, generally tax-free.
Loans are almost always tax-free, and withdrawals are tax-free up to the basis in the contract. Some permanent life insurance can be extremely flexible which makes the assistance of a financial professional even more important.
If taxes are your main concern, you can use life insurance policies as a tax-deferred savings account that compounds your cash while also providing peace of mind to your beneficiaries. If the transfer of wealth is your concern, there is no more efficient means to doing so than through using life insurance.