Permanent cash-value life insurance
offers a source of potentially income tax-free funds, because withdrawals generally come first from the policy owner's basis.
Weintraub often recommends the owner create a Section 162 bonus plan using cash-value life insurance
to work around those restrictions.
5) Life insurance: Cash-value life insurance
is essential to a quality financial plan.
I agree with Milevsky that to attack cash-value life insurance
is a dangerous business.
Currently, sections 7702 and 7702A of the Internal Revenue Code set rules that assume a cash-value life insurance
policy will mature when the insured attains an age of 95 to 100.
More recently, with guidance and a ruling issued in fall 2007, the Service declared as abusive certain trust arrangements involving cash-value life insurance
and providing post-retirement medical and life insurance benefits.
Cash-value life insurance
is considered a form of forced savings.
If that doesn't bridge the gap between income and expenses, consider tapping into nonretirement financial sources such as taxable savings or money market accounts, cash-value life insurance
, or taxable investments such as mutual funds or individual stocks or bonds.
It's got an underlaying cash-value life insurance
policy that funds it,'' Grove said.
If you choose to buy cash-value life insurance
, buy your policy directly from the company.
Products included in the household definition are: Brokerage, Wealth Management Services, Strategic Portfolio Services Advantage, American Express Mutual Funds, Certificates, Accumulation Plans, Limited Partnerships, Real Estate Investment Trusts, Tax-Sheltered Custodial Accounts, Individual Retirement Accounts, and may include Fixed and Variable Annuities, Cash-Value Life Insurance
policies and other products as they become available.
It's logical, then, that this strategy should extend to cash-value life insurance
(specifically fixed index universal life insurance), where clients also have the opportunity to allocate the cash value within the policy to an index allocation and a crediting method that determines how much interest they may receive in a given year.