It allows you to accumulate money in the cash value portion tax free with compound interest, and borrow against it, then pay interest to yourself which is tax deductible as a business expense.
Plus the return of premium tax feature is perfect. You get a dividend each year when the company returns its excess premiums to the policy holders. But it’s not taxable since it’s the return of your after tax dollars.
Why?
It allows you to accumulate money in the cash value portion tax free with compound interest, and borrow against it, then pay interest to yourself which is tax deductible as a business expense.
Okay. What about the high cost of coverage compared to term insurance?
You actually include a term rider with this policy, so you get some inexpensive term insurance along with the advantages of WLI.
Plus the return of premium tax feature is perfect. You get a dividend each year when the company returns its excess premiums to the policy holders. But it’s not taxable since it’s the return of your after tax dollars.