Tax Diversification – Our Specialty
One of the main things we are proud of at Pacific Insurance Group is our ability to enlighten our clients of the possibilities that cash value life insurance plans offer in terms of tax-exempt wealth accumulation.
When properly structured and funded, permanent life coverage policies can become a very powerful financial tool.
While alive, you can access the cash value portion of your policy in such a way that it can supplement your retirement tax-free or act as your own personal bank. When done properly, loans and withdrawals from this bank can be made tax-free.
Often, permanent life coverage costs less than paying someone to manage your money over a long period of time. When structured properly, life coverage cash values have performed similarly or better than other vehicles in their asset class.
When you do pass, wealth stored within cash value policies is able to pass on to your family tax-free through the death benefit. This makes life insurance one of the best ways to avoid taxes as your wealth moves on to your family.
As one would expect, it takes a life insurance agent with intimate knowledge of how to put together such strategies to avoid potentially disastrous slip-ups. However, when executed properly, there is no denying the power of such policies to truly “protect your bacon”.