Federal income tax-free death benefit
Many people don’t realize there can be tax consequences when it comes to inheriting certain assets. Thankfully, FFIUL provides a federal income tax-free death benefit to help protect your family.
Any cash value in your policy accumulates interest on a tax-deferred basis. That means higher policy value accumulation potential for you.
Transfers among accounts inside a policy are on a tax-free basis. Tax-free transfers help protect your earnings from the effects of current taxes.
Tax-free withdrawals and loans
You’ll enjoy easy access to your policy value. When the policy value is sufficient, you may request withdrawals or loans to use for any purpose you wish.
Keep in mind that the tax advantages only apply as long as the policy remains in force. Allowing the policy to lapse could result in adverse tax consequences.