inside buildup

inside buildup

The cash value increases in a life insurance policy. Inside buildup is free of income taxation during the period of buildup, thus making cash-value insurance a more desirable investment vehicle for people in high income-tax brackets.
References in periodicals archive ?
And, the issue of limits on inside buildup on insurance policies is not going away.
If it is not estate tax uncertainty, it's threats to inside buildup.
I started to defend the inside buildup but was interrupted.
untaxed inside buildup within the annuity may be paid out tax-free for LTC expenses).
The inside buildup under A's life insurance contract immediately prior to the sale to B was $14,000 ($78,000 cash surrender value less $64,000 aggregate premiums paid).
4) In 1959, the Supreme Court provided some resolution of the securities law questions, and shortly thereafter Congress signaled its decision to allow the inside buildup of variable annuities to accumulate on a tax-deferred basis.
The owner would be taxed on the inside buildup in the policy beyond his cost basis.
The repeal of the 20 percent special life insurers' deduction, limitations of loss reserves to the present value of unpaid losses, reduction n the deductibility of unearned premiums, taxation of a portion of certain dividends (those subject to the intercorporate exclusion) and previously tax-exempt securities, and the potential tax on inside buildup, were aimed directly at the operations of insurers.
The report questions whether this favorable treatment on inside buildup is the most effective way of achieving these goals.
He said that while the Camp proposal did not touch inside buildup and death benefits, "the industry's holy grail, it did slap the industry extremely hard in all the new ways," such as deferred acquisition costs and on reserve calculations, for example.
These proposals include capping tax-advantaged retirement accounts at the $3 million level and limiting inside buildup.
The Congressional Joint Committee on Taxation (JCT) has, for many years, classified the exclusion of the inside buildup as a major tax expenditure.