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

Why Tax-Free Death Benefits Matter

30 Jan 2025 · 1 min

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Speaker A argues that death benefits must be auditable and demonstrably meritorious to qualify for favorable tax treatment; the government’s stated test is that a death benefit has merit, otherwise it invites scrutiny. The speaker also explains why governments provide tax breaks for charitable donations (limited public capital) and notes that when insurance premiums are paid with after-tax income the resulting death benefit therefore has merit. Richard is mentioned as saying families won’t need to rely on social programs.

Chapters

Anything that we do must be auditable. And that death benefit has to have merit. And the government's position, as at the last time it was discussed, is that provided the death benefit has merit, that's really the primary box to check off. Otherwise you invite scrutiny. Understandably. So why does the government provide tax breaks for people to donate money to charity? Because the government doesn't have the capital to support those initiatives and to provide money there. When you're dealing with an insurance contract and you're paying premium with after tax income. Well, that death benefit, it has merit then. The family, family is not going to rely upon social programs, as Richard mentioned.