When asked to list out the different assets that they own, people typically respond with real estate, vehicles, retirement accounts, bank accounts, and other investments. And sometimes they forget to list life insurance policies.
Life insurance, as an asset class, can come in very handy, especially for higher-income earners. It’s one of the only places where you’re not limited on contribution amounts, the money will grow tax-free within the policy, distributions are tax-free, the death benefit is tax-free, and if you require home care or long-term care, an acceleration of the death benefit may also be tax-free for those certain conditions.
This is an asset class that should not be overlooked as part of an overall asset allocation strategy. For more information, download this guide “Life Insurance as an Asset Class.”
Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company and may be subject to restrictions, limitations or early withdrawal fees. Life Insurance offered through Strategy Financial Insurance, LLC. Fees and commissions will vary by product.