Life insurance can generate tax-free income via policy loans

 Tax free income using life insurance with retirement Consultants bullet diet listening live to see the day 33 years in this business and all the sudden life insurance has emerged as a major player a couple years ago I was at the Thunderbird School of Management all these multi-millionaires flu in a couple billionaires and attending that School of Management and the top two subjects were all about tax-advantaged issues and one of them was white furniture in the simulation let's go to the mechanics first is a non-qualified life insurance was not interested it's not under under the jurisdiction of the government in that regard if you okay okay so but then that means there's no deduction right now make sure all there now we know that means in my contract I don't work original contributions that I put in there that I can take out text right that's right so let's make sure we know that and by the way most bases comes out last in first out but we're one of the few that still are allowed first in first out so I could actually take the bases after the 15th I can pretty much take my basis absolutely but now let's get to the real big were talking about the actual profit or gain in the contract we could take a collateralized policy loan from that from the cash values and I can actually start funding an annual distribution of income off at as long as I keep the contract in force for the life of the policy insured and that's really the key this insurance umbrella has existed for as long as we didn't come text 1913 and by keeping that umbrella and it's always been the case but keeping an umbrella over your money it says this is tax deferred is tax-free when it passes and we can access it without paying taxes during their own lifetime so the key is to those people I've always thought of life insurance is with someone else gets money when I die if there for him to put his ruling as I can we're doing just the opposite we may be playing down the amount of the death benefit at maximizing the cash value until they become very close to each other because at that point we may be older and paying very little for the coverage or paying very little for the life insurance but throwing what's a great big tax free savings account with several other benefits that really helped and retirement it wouldn't because I didn't hear you play and some people use their life insurance for that extra income only and that's a great idea these are for strategic values during this time for your trying to delay Social Security and so forth or even for a regular income but there are some contracts that allow that have actually different benefits long-term care we can't do this with just anyone to buy a car and drive a different car driving to end the vehicle just like the cell phone that's been and has other benefits long-term critical illness Riders anytime during your lifetime if we have the correct policy if you have an accident or stroke a major illness you can access up to 2% of your death benefit for clients frequently 1020 $30,000 a month tax free from the things that they would have had to go out and purchase an extremely expensive policy for its covered and I've seen it be helpful to clients even recently 4 people have had things happen they didn't expect to have happen and we got a benefit that had nothing to do with the death benefit for tax-free income because of a situation that we covered and it turned out to happen so I can use it that way for income there could be these ancillary issues like catastrophic care eldercare thought some things you could do absolutely I had a client with with recently with pancreatic cancer this policy about three years his wife was having to take time off from work we were able to access up to $9,000 a month tax free from that policy he didn't need that much he took $1,500