Showing posts with label benefits of permanent life insurance. Show all posts
Showing posts with label benefits of permanent life insurance. Show all posts

Thursday, October 15, 2009

Benefits of Permanent Life Insurance

1. Tax-Deferred accumulation of policy cash value
2. Avoidance of 10% tax-penalty on withdrawals before 59 1/2 on qualified plans
3. FIFO (First in-First out) tax treatment on withdrawals = tax free withdrawals up to amount paid in.
4. Tax-Free death benefit to beneficiaries
5. Death benefit in excess of policy cash value
6. Death benefit avoids probate