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Why corporate-owned life insurance is a powerful planning tool

You probably know that life insurance can provide a tax-effective lump sum to your heirs or your estate at death. But did you know that life insurance also offers benefits while you’re alive?

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Benefits at a glance

  • Your investments will have tax-advantaged growth inside the policy.
  • Investment growth inside the policy will not impact your small-business deduction.
  • You will save tax by depositing after-tax corporate dollars (instead of personal ones).
  • You will have some flexibility to decide when to make contributions to the policy.
  • You have access to the cash in the policy during your lifetime.
  • Your heirs receive most, if not all, of the proceeds tax-free.