An Underutilized Asset Class

You may be scratching your head wondering what asset class you could be missing out on. If you don’t already have whole or permanent life insurance, that’s the asset class we’re talking about, and you may want to contact an expert to determine if it’s a asset class that you should be using in your overall financial strategy.

Yes, life insurance is a death benefit for your loved ones, but consider that life insurance can also “benefit” your life while you’re living if it’s structured properly.

  1. As the cash value of your policy builds up you can borrow or withdraw those funds if you need them. It’s also possible to fund part of your retirement with the cash value of a policy. Of course, any policy loans and/or withdrawals will reduce death benefits and cash values.
  2. Withdrawals from most whole life insurance policies are free from federal income tax up to the investment in the contract and you can also borrow that money tax free.
  3. Life insurance can be used to offset estate taxes after you die which prevents your loved ones from having to sell their assets in order to pay the IRS. Again, a policy that’s structured properly is capable of providing a tax-free benefit.

These are just 3 of the benefits of permanent life insurance. If you’d like to take an in-depth look at how life insurance can help diversify your portfolio of assets, we’d love to show you the possibilities.

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