Central to reaching your income goals is a policy issued by a highly rated insurer. As a result they are not subject to current federal, state and local income taxes, meaning every dollar is free to grow and compound until it is withdrawn from the policy. Tax-free Transfers Variable universal life offers you a variety of investment options to help you customize a policy to best fit your needs. Because tax law presumes that actual cash payments into the policy are withdrawn before any interest and dividends, policy owners can withdraw the entire basis in their contracts free from taxation. Free from Current Taxation Policy owners can sometimes borrow up to 90 percent of the surrender value of their policies free from current taxation, then use the death benefit to repay the loans.
Loans are free from current taxation as long as the policy remains in force.
Income Tax-free Death Benefit Death benefits paid from a properly designed variable universal life policy are paid income tax free to your named beneficiary. The death benefit may be raised or lowered as your needs change. Minimal Death Benefits Life coverage is limited in order to maximize dollars available for investment. While no investment program can guarantee a profit or protect against a loss in a declining market, over the long term a disciplined approach to investing tends to offer advantages over an unstructured one. Zero Cost Loans Maximize spendable dollars by minimizing the effects of loan interest.