Tax Advantages of Having Life Insurance Plans

Tax Advantages of Having Life Insurance Plans

All of us already know that providing financial security to your loved ones is the main purpose of Life Insurance. But did you know that Life Insurance also has 2 big tax advantages? First one being you pay no current federal income tax on the potential cash value growth ie as the cash value accumulates, it is not subject to current taxation. Secondly as a general rule Life Insurance death benefits paid out to the beneficiary are not taxed, which means the sum received by the beneficiary will not be included in the gross income of the beneficiary for tax purposes.
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