Life Insurance Optimization


There's a lot more to tax planning than filing business and personal tax returns. The higher your income and the more assets you acquire, the more complicated it all becomes. This is where PlanPrep and your tax advisor can come into the picture.

We have helped business owners redirect their year-end distributions into life insurance plans designed to provide them with the money to cover most of the income taxes and substantially more money to spend in retirement. Plus, his family would receive a substantial income-tax free death benefit* if he were to pass away before he started taking withdrawals.

This technique can be funded by IRAs as well.

It can be designed in many different ways, such as to maximize the death benefit on a single person or couple for estate planning purposes.


Death benefits may increase before withdrawals begin and decrease after they begin. Withdrawing funds differently than as iilustrated and the changes in policy performance will impact the long term results. We do use conservative assumptions, but there can be no assurance of achieving the results as illustrated.

These are long-term strategies and are based on designs from 2019. The tax laws are complex and subject to change. These examples may not apply to your situation. It is essential to have proper tax advice and insurance illustrations before pursuing a strategy. All insurance in these examples require that you qualify after an application and underwriting process.