Tax shelter implies that once that value is removed from the shelter it could trigger is a taxable event. That is is case with a whole life while you are living, however, the total death benefit of a whole life policy is tax free. Remember, the primary purpose of life insurance is to provide tax free cash at death.
Whole life does offer tax advantaged growth. In Canada, for example a whole life policy's cash value is exempt from accrual taxation within certain limits.
Considering the tax free growth of the cash value, whole life or Universal Life for that matter, might be considered tax shelters, but it they are better thought of as having tax advantaged grow.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.
That is an excellent question! There are definitely ways that your life insurance can be used as a hedge against taxes. You will pay a lot more up front, but with careful planning, you can reap some sizable tax advantages. For example: With careful planning, the value of the death benefit can be excluded from estate taxes; by paying larger premiums into a policy like a UL, or indexed UL, you can create a very large cash value that can be withdrawn tax free as an income until it is used up; and in cash value policies, even if you withdraw more than the premiums you've paid in, the amount is considered a loan, and again is tax free. There are dangers in doing these things, so you want to consult a good agent or tax advisor first, okay? please contact me if you need help, and thanks for asking!
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Whole life does offer tax advantaged growth. In Canada, for example a whole life policy's cash value is exempt from accrual taxation within certain limits.
Considering the tax free growth of the cash value, whole life or Universal Life for that matter, might be considered tax shelters, but it they are better thought of as having tax advantaged grow.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.