Accessing Tax-Efficient Capital: Using Whole Life Policies as Liquid Assets
June 7, 2023
On this episode of Family Business with Purdeep Sangha, listeners will learn about licensed accountants and insurance opportunities, wealth management challenges, and bringing professionals together in business transition processes. The speaker dives deep into different types of insurance, the benefits of tax exempt whole life policies, and how to avoid unnecessary taxes for entrepreneurs. By sharing personal and professional experiences, the speaker emphasizes the importance of financial security and acquiring insurance. Listeners will also learn about estate freezes, and how life insurance policies can cover tax bills after an individual's passing. The speaker also introduces the concept of the "pie", which has helped them save clients millions of dollars in taxes. Lastly, they touch on the importance of marketing life insurance as living insurance instead. Tune in to learn more about insurance and how it can benefit entrepreneurs and families alike.
Topics covered in the podcast episode summarized with bullet points are as follows:
- Accountants are exploring insurance licensing for revenue opportunities.
- There are challenges for accountants in getting into wealth management from a regulatory perspective.
- Revenue opportunities in insurance are attracting many people.
- The tax expert in insurance policies is a question that raises.
- Speaker's company acts as a "quarterback" in business transition processes.
- A client's story is shared to demonstrate the importance of a quarterback.
- Different types of insurance are discussed - term insurance and tax exempt whole life insurance policies.
- A whole life policy allows business owners to accumulate a nest egg they can borrow from on a tax-free basis.
- There are guarantee fees, interest rates, and underwriting requirements to consider in life insurance policies.
- The speaker emphasizes the importance of insurance for financial security, especially in unexpected situations like accidents or illnesses.
- Businesses that start from zero value need insurance to avoid unnecessary taxes.
- Estate freeze can freeze the parents' shares' value and issue new ones to children to avoid capital gain taxes.
- Seeking professional advice is crucial, and not all advisors or professionals are equal in terms of knowledge and experience.
- Planning for tax bills through life insurance policies can save money.
- The pie is an integral part of the business process to save taxes and by calling it living insurance, changes in people's mindset can happen.