What are the tax advantages?

  • Tax-free death benefit
  • Tax-deferred earnings
  • Tax-advantaged access to policy value through loans and withdrawals
  • Tax-free transfers

Life insurance also meets special IRS requirements that makes it eligible for tax-deferred earnings, which increase the potential for policy value accumulation.

In traditional nonqualified savings or investment accounts, earnings are taxed on an annual basis. 

Some of the features that help set life insurance apart from other “financial vehicles” are tax-deferred earnings, transferring policy value from one account to another without tax consequences and tax-free loans and withdrawals.

With appropriate funding and provided there is sufficient policy value, policy owners can access it through tax-free loans and withdrawals to help supplement retirement income, help pay for a new home, additional education, or other needs their family may have.