Tax language—you’ll often hear talk about tax loopholes, tax breaks, tax shelters. All have a negative implication and show a fundamental misunderstanding of why tax advantages exist in the first place. Whole life insurance taxation is another beast altogether. With whole life insurance, I often hear people talk about how it’s tax free, which is equally misleading. While the death benefit is tax free and there are ways of accessing cash value without causing a taxable event. To say it’s entirely tax free is incorrect. And yet (outside of one area)
Read MoreThe Truth About Whole Life Insurance Taxation
