Richard CanfieldPodcast Host and IBC Advisor, Ascendant Financial · Authorized Infinite Banking Practitioner | Author of 4 Books

Life Insurance Exit Tax Options

5 Nov 2024 · 0 min

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This content was created by Richard Canfield. This content was uploaded by Richard Canfield. This is a YouTube video titled "Life Insurance Exit Tax Options" discussing the consequences and options related to permanent life insurance when cutting ties, including tax implications and clearance certificates.

When it comes to the permanent life insurance, there are consequences if you decide to cut ties and it is an asset and let's say the fair market value of the asset is greater than the acv. Really, there's two options. The first option is to pay the tax and get that clearance certificate that is the most preferred option to do. The second option is with no clearance certificate, the life insurance carrier would end up withholding 50% of the proceeds of the disposition.