Broker Check
Tax-Deferred Income is an Advantage to Whole Life Insurance

Tax-Deferred Income is an Advantage to Whole Life Insurance

| September 23, 2019

September is Life Insurance Awareness Month (LIAM), and we’re providing resources and conversation starters each week that you can share with your clients. We hope you’ll find that they fit into conversations year-round, but especially during LIAM. This week: Tax Benefits.

Ashford Brokerage is committed to streamlining your business. Reach out to our Brokerage Team for more resources, ideas, and support!

Whole life insurance can provide you with multiple benefits, far beyond the death benefit. One of the incentives is the ability to receive tax-deferred payments. The accumulated cash value in a whole life policy grows tax-deferred1. You purchase whole life insurance to financially protect your family in the event of your death. However, its cash value Grows and accumulates during your lifetime. This gives you two different ways of using the whole life policy: as a living asset with tax-advantaged distributions2 — and as a vehicle that provides an income tax free and potentially estate tax free death benefit.

View this video to understand the tax benefits of a whole life insurance policy and contact us today to discuss further!

1 Guardian, its subsidiaries, agents and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation.

2 Policy benefits are reduced by any outstanding loan or loan interest and/or withdrawals. Dividends, if any, are affected by policy loans and loan interest. Withdrawals above the cost basis may result in taxable ordinary income. If the policy lapses, or is surrendered, any outstanding loans considered gain in the policy may be subject to ordinary income taxes. If the policy is a Modified Endowment Contract (MEC), loans are treated like withdrawals, but as gain first, subject to ordinary income taxes. If the policy owner is under 59 ½, any taxable withdrawal may also be subject to a 10% federal tax penalty.

Guardian® is a registered trademark of The Guardian Life Insurance Company of America. 2019-83931 Exp. 8/21