Policy Transfers: The Importance of Planning in Advance

If your client owns a business and is looking at purchasing life insurance, it may be beneficial to have their holding company own the policy, rather than the operating company. Transfers of a life insurance policy from an operating company can result in stiff tax penalties.

So how can your client avoid these types of tax complications? Careful planning in advance is the key.

For more on how to help your clients avoid the stresses of policy transfers, listen to our PPI Advisory Tax Talk webinar, What is the Key to Avoiding Future Policy Transfer Fallout: Advanced Planning. (requires login)

For more information on this topic, please refer to this article: Policy Transfers from Individuals to Corporations: Still Worthwhile?

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When Your Business Owns a Life Insurance Policy, Proper Set-Up is Key