Policy Loan vs. Withdrawal: Understanding the Tax Implications of Each Accessing the cash value of a Permanent Life Insurance policy involves two primary methods—a loan or a withdrawal—with critically different tax consequences. The rule of…
The Use of Whole Life Insurance in Buy-Sell Agreements for Small Businesses For businesses with multiple partners, a **Buy-Sell Agreement** is essential for continuity. Whole Life insurance is often the preferred funding vehicle for this…
The Risk of Variable Life Policies: When Cash Value Performance Falls Short Variable Life Insurance (VL) offers the highest potential for cash value growth among permanent policies, but this comes with the greatest risk: the…
Understanding Policy Dividends as a Return of Premium (Non-Taxable) A key tax benefit of participating Whole Life insurance is the way the Internal Revenue Service (IRS) treats policy dividends. Unlike dividends received from stocks or…
Maximizing Cash Value: The Strategy of Aggressive Paid-Up Additions (PUAs) For policyholders who view Whole Life insurance as a primary savings and wealth accumulation vehicle, the most effective strategy is the aggressive use of the…