Income tax diversification with life insurance

Tax diversification is generally known as a strategy to spread assets across a variety of investment types that have different tax treatments. From an income tax standpoint, there are generally three categories investors can allocate assets to:

?Why diversify through life insurance?

Financial benefits for beneficiaries: Generally, the death benefit is income-tax-free.

Growth potential: Cash value growth is generally income-tax-deferred.

Greater tax diversification: Distributions are received generally income-tax-free.

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Here is an example, for illustrative purposes only, of how a diversified distribution

approach might work:

Is this plan right for you? First, we need to answer the following questions:

What is your life insurance need? The type and amount of life insurance (Term, Permanent or Universal) needs to be determined based on your objectives and budget.

What are your retirement goals? You may want to consider diversifying retirement dollars. Retirement income from life insurance policy withdrawals and loans may not affect your income tax bracket, Medicare premiums, capital gains or Social Security. This approach could result in a generally income-tax-free death benefit for beneficiaries and generally income-tax-deferred growth.

Want to learn more? Feel free to contact me!