10 Strategic Uses for Cash Value Insurance

Jun 11, 2022 | Blog, Insurance | 0 comments

  • Paydown versus interest only – enhance lifestyle by spending more of your wealth
  • Reduce pressure on capital – less capital is needed to produce the same retirement lifestyle
  • Reduce pressure on withdrawal rates – less reliance on traditional retirement savings and less worry about market fluctuations
  • Reduce income risks – less volatile assets can be used to produce more stable income
  • Reduce Taxes – reduce taxes through tax deferred growth of cash values in life insurance, tax  preferred loans, and tax free distribution at death
  • Capital opportunities – have flexibility to use capital for opportunities that do not create immediate income
  • Reduce fear – reduce fear of running out of money
  • Inflation protection – reduce the effect of long term inflation by increasing expected retirement income
  • Additional income – create additional income through dividends, cash value, or loans
  • Reduce risk of tax increase impact – less income coming from taxable sources so lower impact should tax rates rise

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