The Truth About Whole Life Insurance Taxation

by | Apr 23, 2021 | 2 Comments

whole life insurance taxation

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)

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Comparing Taxes: Cats and Mice

by | Apr 24, 2020 | Comments Off on Comparing Taxes: Cats and Mice

Slowing Down and Analyzing Mathematics/Logic. Comparing Taxes.

Comparison of Accounts – After Tax Contribution with Annually Taxable Growth (Savings Account, Money Market, etc.) vs After Tax Contribution With Tax Deferred Growth (After Tax-Tax Deferred IRA, Permanent Life Insurance, etc.) vs After Tax Contribution with Tax Free Growth (Roth, Municipal Bond, etc.) vs. Tax Deductible (Pre-Tax) Contributions with Tax deferred Growth (401K, Tax Deductible IRA, etc.). This can be a difficult topic to understand and, unfortunately, this confusion has led to incorrect information being spread to the consumer by the media and the financial industry. The ultimate result

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How To Show Your Clients the True Cost of College

by | Dec 4, 2018 | Comments Off on How To Show Your Clients the True Cost of College

The Education Calculator is a tool that illustrates the true cost of college to your clients and creates the basis of a savings model. The numbers may seem straightforward, but the calculator allows you to factor in the yearly rate of increase in tuition and interest on student loans. It is simple to toggle between student information or parent information, which illustrates the base cost and the amount needed to be saved by the parents. The calculator can accommodate the information of up to ten children, making the total cost

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7 Ways To Use The Death Benefit

by | Aug 27, 2018 | Comments Off on 7 Ways To Use The Death Benefit

  In this recent presentation, Truth Concepts™ did for The National Network of Estate Planning Attorneys we demonstrate how to determine the rate of return on the cash value of a policy as well as take you through the 7 ways to use the death benefit. This is also a good tutorial on the use of the Funding, Diversification and Distribution calculators.  

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Borrowing Against Whole Life Insurance at a Bank

by | Jun 12, 2018 | Comments Off on Borrowing Against Whole Life Insurance at a Bank

This post originally appeared as an article on Kim Butler’s Partners for Prosperity website at www.partners4prosperity.com/collateral We thought this to be valuable information to also share with the Truth Concepts community.    We get many questions on using life insurance policies with cash value as collateral for bank loans. First, you can ONLY borrow against a policy with cash value, such as whole life insurance. You cannot use this strategy at all with a term insurance policy. Often, local (as opposed to large/national) banks and credit unions will lend against the cash

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