Could you tell me the different between whole life and permanent life insurance? they both tax free at the end when you need to withdraw money out when the time comes? for tax wise. Which one has a better advantage?
As i do not want to see my retirement money goes down the drain?
Or pay to uncle sam depends on my tax bracket at that time?how do we escape from paying Uncle sam part of our retirement saving?
Which one has higher risk? Permanent or whole. could you explain it to me so I can made a better decision for my retirement money?
thks
tiffany
Whole Life is a specific form of Life Insurance. While Permanent Life Insurance is not a product but describes products that can include policies such as Whole Life, but also may include other policies such as Universal Life, Variable Life, Surivivorship Life, as well as others. All permanent forms of Life Insurance have similar or identical tax rules. They grow tax deferred, The death Benefit is income tax free. And withdrawals made up to the policies cost basis are received income tax free. Loans can be taken on the policies that will allow funds in excess of the cost basis to be withdrawn tax free. However caution about how much to borrow and keeping the policy in effect need to be taken into consideration when borrowing. Each policy and fact pattern needs to be understood before action is taken so to avoid any negative results.
As for your tax question the Life Insurance can be a very good savings plan, the cash value grows without taxation. The death benefit can be received tax free by the beneficiary. Income can be taken out of the policy without taxation as long as caution and certain guidelines are utilized, such as not withdrawing to much money, thereby risking the policies viability to stay in effect throughout the insured owners lifetime. The danger is if you end up surrendering the policy, that you made a profit on. If you did so, the gain would be taxed at ordinary income tax levels. This is the same regardless of which form of Permanent Life Insurance you choose.
If I can be of addittional help. Call me. I would be happy to try to help you. Also there is some articles on the site that I would suggest you to read regarding your questions.
Hi, I'm Michael Fliegelman. I created this Website to answer this question, and many more you may have. You may, or may not already know a lot about life insurance. Perhaps you read an article somewhere, attended a seminar, or got a call from someone.
Whatever the reason you've landed here, please take a moment and explore the many articles and videos on the subject of Whole Life Insurance
Insurance Asset Management
There have been increasing concerns over potential declining values, and under performance of larger Universal or Variable Life Insurance policies.
Could you tell me the different between whole life and permanent life insurance? they both tax free at the end when you need to withdraw money out when the time comes? for tax wise. Which one has a better advantage?
As i do not want to see my retirement money goes down the drain?
Or pay to uncle sam depends on my tax bracket at that time?how do we escape from paying Uncle sam part of our retirement saving?
Which one has higher risk? Permanent or whole. could you explain it to me so I can made a better decision for my retirement money?
thks
tiffany
Hi Tiffany:
Whole Life is a specific form of Life Insurance. While Permanent Life Insurance is not a product but describes products that can include policies such as Whole Life, but also may include other policies such as Universal Life, Variable Life, Surivivorship Life, as well as others. All permanent forms of Life Insurance have similar or identical tax rules. They grow tax deferred, The death Benefit is income tax free. And withdrawals made up to the policies cost basis are received income tax free. Loans can be taken on the policies that will allow funds in excess of the cost basis to be withdrawn tax free. However caution about how much to borrow and keeping the policy in effect need to be taken into consideration when borrowing. Each policy and fact pattern needs to be understood before action is taken so to avoid any negative results.
As for your tax question the Life Insurance can be a very good savings plan, the cash value grows without taxation. The death benefit can be received tax free by the beneficiary. Income can be taken out of the policy without taxation as long as caution and certain guidelines are utilized, such as not withdrawing to much money, thereby risking the policies viability to stay in effect throughout the insured owners lifetime. The danger is if you end up surrendering the policy, that you made a profit on. If you did so, the gain would be taxed at ordinary income tax levels. This is the same regardless of which form of Permanent Life Insurance you choose.
If I can be of addittional help. Call me. I would be happy to try to help you. Also there is some articles on the site that I would suggest you to read regarding your questions.
http://whywholelife.com/life-insurance-asset-class-for-troubled-times/
I hope this helps.
Sincerely,
Michael Fliegelman