Life Insurance Tax Traps for the Unwary

Life insurance has been recognized as a useful way to provide for your heirs and loved ones when you die. Lawmakers have long recognized the social significance of life insurance as a source of funds for widowed spouses and children, and have offered liberal tax benefits as an incentive to those who put their hard-earned…

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Strategies Using Life Insurance

What is it? Life insurance is not only about protecting your survivors in the event of your death. Depending upon the type of policy you purchase, it can also enable you to meet specific life goals: retiring comfortably, paying for your child’s education, accumulating wealth, and paying for estate costs. If you own a business, life insurance can even fund…

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Tax Planning Tips: Life Insurance

Understanding the importance of life insurance is one thing. Understanding the tax rules is quite another. As insurance products have evolved and become more sophisticated, the line separating insurance vehicles from investment vehicles has grown blurry. To differentiate between the two, a mix of complex rules and exceptions now governs the taxation of insurance products.…

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Planning Ahead for Life Insurance Proceeds

Life Insurance Proceeds Why did you purchase life insurance? If you’re like most people who buy life insurance, you’re looking to provide a source of income for someone (e.g., a spouse, parent, or child) after you die. Buying the policy was the first step. Now you’ll need to do a little more work to ensure…

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