Often overlooked, here's how permanent life insurance can be a valuable planning tool

financialpost.com:

Whether owned personally or by a corporation, permanent life insurance offers a range of planning advantages that can enhance your overall estate planning, increase liquidity and provide tax-saving opportunities, which makes it a potentially valuable tool when it comes to financial planning.

Let’s explore how leveraging this strategy can add significant value to your financial portfolio and help you achieve your long-term goals.

Permanent life insurance stands out as a unique financial solution since it provides lifelong coverage and the opportunity to accumulate cash value over time. The cash value grows on a tax-deferred basis, meaning the investment gains within the policy are not taxed as long as the policy remains active.

However, there may be tax implications when a policyholder withdraws cash from the policy or surrenders the policy for its cash value. The tax advantage extends to the investments within the policy, even upon death when the insurance benefit is paid out.

This tax-deferred growth can play a crucial role in long-term wealth accumulation and financial planning. Moreover, beyond the tax advantages, certain permanent insurance products offer stability through a range of investment options. These options provide policyholders with the flexibility to allocate their cash value across diverse investment choices, such as mutual funds or segregated funds, available for their specific policy.

This diversification of investment options enhances stability by allowing policyholders to tailor their portfolio to their risk tolerance and financial objectives. It also enables them to adapt to changing market conditions, potentially mitigating risk and optimizing returns.

Permanent life insurance can also be an