Do changes in US tax law make permanent life insurance attractive?
January 7, 2013 3:39 PM Subscribe
Do the new US investment taxes and increasing rates on dividends and capital gains make permanent life insurance attractive for high income individuals?
posted by cheez-it to Work & Money (1 answer total)
The classic response to the question: "Should I buy whole life insurance?" has been no. The theory is that perm insurance is expensive and for less money you can by term, invest the rest and come out ahead.
That said, does this advice still apply given the changes to the current tax law, especially for those who have fully funded their tax deferred savings vehicles (eg. 401k/403b, IRAs, etc). The though is using WL/UL/VUL as another means to allow income to grow tax deferred.