3 Tax Advantages with Cash Value Life Insurance
Taxes are top of mind for many people, which makes it a great time to have conversations about how clients can keep more of what they earned. How? By incorporating tax-advantaged solutions – like cash value life insurance – into their retirement plans. With tax-deferred growth and income tax-free distributions,1 it can be used for so much more than protection, including college and long-term care expenses.
1 Distributions are through loans and withdrawals, which will reduce a policy’s cash value and death benefit. Loans are not considered income and are not taxable while withdrawals are tax-free up to the policy’s cost basis, provided the policy is not a MEC.