First, let's start with three tax concepts that were left intact:
1. Tax-free death benefit of life insurance. Your beneficiaries can receive life insurance proceeds
free from income tax with very few exceptions.
2. Tax-deferred growth of life insurance cash values. You can grow cash values in your life insurance policy
tax-deferred, making permanent life insurance a great part of your financial portfolio.
3. Access to cash value without current taxation. When properly structured, life insurance policy cash
values may be accessed through loans and/or surrenders to basis without current taxation.