From WSJ: A Small Tax Change Is a Boon for Permanent Life Insurance

Written By Managan Johnson

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The law lowers a minimum interest rate used to determine whether combination savings and death-benefit policies known as permanent life insurance are too much like investments to qualify for tax advantages granted to insurance. The interest-rate floor was put in place in 1984 to weed out policies that were mostly investment vehicles with a thin layer of insurance. Lowering the rate allows owners to put more in the savings portion.

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Managan Johnson http://www.johnsonlawmd.com
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