Consumers who can see retirement on the horizon and want to ensure sufficient income throughout old age may want to consider how a whole life insurance policy
, the principal of which is tax exempt, can serve as a savings tool.
It is important to note that the beneficiary is not taxed on any proceeds from the death benefit that are over and above the cash value of the whole life insurance policy
A universal life insurance policy is similar to a whole life insurance policy
because it provides a death benefit and accumulates cash value on a tax-deferred basis.
A whole life insurance policy
is a permanent policy that provides for a guaranteed death benefit on the death of the insured in exchange for set, guaranteed premium payments.
In 2013, MassMutual realized its eighth consecutive year of growth in whole life insurance policy
sales $347 million and demand continues to be strong through the first three quarters of 2014.
Co The value of a whole life insurance policy
is uncorrelated to the stock market and is largely guaranteed by the insurer, so that neither death benefits nor cash values are affected by declining markets.
The Seventh Circuit recently affirmed the Tax Court's holding requiring that a couple recognize income from the cancellation of their whole life insurance policy
even though they technically received no funds upon cancellation.
Estate creation: Buying a whole life insurance policy
gives the insured an instant estate and makes him worth a lot more money.
Many senior clients may be pleasantly surprised to learn that an older, whole life insurance policy
has acquired a significant amount of cash value over time.
The WBP expert sells Jones a $5 million whole life insurance policy
with an annual premium of $100,000.
Although the benefit is not as great, the same analysis would hold true for a whole life insurance policy
with cash surrender value.
NYSE:SLF, TSX:SLF) announced the introduction of Sun Care Whole Life (WL), a single premium whole life insurance policy
with a linked benefit that owners can apply to long-term care costs, including for in-home care, assisted living, and nursing home facilities.