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
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