Why Life Insurance for U.S. Taxpayers?

• Tax Benefits

For as long as there have been income tax laws in the U.S., insurance products have enjoyed favorable treatment. If properly structured and managed, the assets inside a life insurance policy enjoy tax-free accumulation of investment gains, distributions of basis and earnings can be taken from the policy tax-free, and at the time of death, the death benefit receives a stepped-up basis for tax purposes, which means the death benefit can be passed on to the insured’s estate tax-free.

Annuities also enjoy the tremendous advantage of tax-free accumulation. An annuity is a great investment for many clients who want tax-free accumulation, but do not qualify for or do not need life insurance. It is important to know, however, that distributions from an annuity do not benefit from tax-free distribution.

• Asset Protection

In some U.S. states, the assets of life policies or annuities cannot be included in bankruptcy judgments and cannot be seized by U.S. courts.

• Death Benefit

Life insurance is often used to provide security for the family and estate of the insured. Upon the death of the insured proceeds are available to fund such things as income replacement, debt retirement, buy-sell agreements, and estate tax payments.

To find out more please contact us:

Email: clientserv@fidinsco.com

The Law Building
PO Box 14, The Valley
Anguilla, British West Indies

Phone:   264- 497-0484

Fax:   264- 497-5753