Compare the potential tax-free income from permanent life insurance loans and withdrawals* to a taxable alternative with a new Benefit Summary Analysis now available in web illustrations.
Here is an example of the Benefit Summary Analysis Page that is now available in web illustrations.
Please note that this page is optional and is only available with non-LIBR income. The assumed tax rate is entered on the Reports Screen of the user interface (range from 0% to 50%) where the page is selected. The client should provide their assumption for the tax rate to use:
*The use of cash value life insurance to provide a tax-free income assumes that there is first a need for the death benefit protection. The ability of a life insurance contract to accumulate sufficient cash value to help meet accumulation goals will be dependent upon the amount of extra premium paid into the policy, and the performance of the policy, and is not guaranteed. Policy loans and withdrawals reduce the policy’s cash value and death benefit and may result in a taxable event. Withdrawals up to the basis paid into the contract and loans thereafter will not create an immediate taxable event, but substantial tax ramifications could result upon contract lapse or surrender. Surrender charges may reduce the policy’s cash value in early years.
The companies of National Life Group® and their representatives do not offer tax or legal advice. Please encourage your clients to seek tax or legal advice from their appropriate professional advisor.