Permanent Life Insurance

Permanent Life Insurance

Permanent life insurance provides a tax-free death benefit payment to your beneficiaries. In addition, permanent life insurance policies allow account values to grow on a tax-advantaged basis earnings are exempt from income tax while the investments remain in the policy.

For this reason, most permanent insurance policies include a feature that allows extra deposits, over and above the cost of insurance. These deposits are invested within the policy investment account(s) and, depending on the policy, they may help increase the total death benefit. This can significantly increase the after-tax value of your estate.

Many clients use these features for a range of purposes: to shelter additional non-registered assets, provide funds used to pay taxes due upon death, or transfer their excess assets to the next generation or to a charity.