Are you aware of the tax benefits that come with life insurance policies? 🤔 Take our quiz and test your knowledge!
👉 The death benefit of a life insurance policy is generally paid out income tax-free to beneficiaries.
True
False
👉 Life insurance payouts are generally tax-free.
True
False
👉 Life insurance premiums are paid with after-tax dollars, and generally, premiums are not a tax-deductible expense.
True
False
👉 Dividends from life insurance can be used to purchase paid-up insurance additions tax-free, and the cash value of the paid-up additions accrues tax-deferred.
True
False
👉 A permanent life insurance plan that is structured correctly can provide a tax-free financial cushion, build wealth, transfer wealth, and more to your family.
True
False
👉 Using policy loans to generate retirement income ensures that your retirement income from the whole life policy remains tax-free.
True
False
👉 In certain cases, life insurance can provide estate tax liquidity.
True
False
👉 Donating a life insurance policy to charity can provide tax benefits.
True
False
Did you answer true to all of the questions?
🎉 Congratulations, you have a solid understanding of the tax implications of life insurance policies!
But if you’re not completely confident in your knowledge or want to learn more about the benefits of life insurance policies, we’re here to help.
💼 Palma Financial Services offers a life insurance audit to optimize coverage and save money. Our experts can review your policy and help you make informed decisions for your future financial security and peace of mind.