Value of Our Life Insurance Structures

The value of life insurance extends far beyond its traditional use as a way to protect your family in the event of an early death. In addition to affording peace of mind, life insurance provides the following key benefits:

  1. Tax Savings

  2. Safety and Protection

  3. Stability and Diversification


Just like a 401(k) or similar deferred compensation plan, a cash value life insurance policy will grow tax-deferred and if structured properly, withdrawals are taxed on a first-in, first-out basis. With very rare exceptions, death benefits are paid to the beneficiary or beneficiaries of the policy income tax-free and it’s even possible to structure the policy to completely escape estate taxes. If it is anticipated that estate taxes will need to be paid, IRS-approved estate-freezing techniques may be used to reduce the tax burden while simultaneously creating wealth in subsequent generations. Of course, the death benefit may be used to satisfy any estate tax obligation resulting from your death.

Income tax-free loans can also can be made during your lifetime at little or no cost in the event of an emergency or to capitalize on an investment opportunity.


While life insurance can help protect your family in case of an early death, it can also be used later in life to protect against the risk of living too long. Additionally, a policy can be effective in shielding your family from the financial and emotional strain of long-term care. If you are sued for outstanding debts or file for bankruptcy, depending on your state’s regulations, your insurance policy may provide creditor protection.


Financially perceptive investors understand that life insurance is not correlated with their stock and bond portfolios and adding insurance to a portfolio may even lower the level of risk without sacrificing return. In fact, most cash value insurance products guarantee against losses and depending on the policy, you can be guaranteed an annual, predictable, long-term rate of return well in excess of yields provided by AA-rated bonds.

The flexibility and peace of mind along with the income and estate tax benefits that life insurance offers is second to none. From income replacement to special needs planning, funding buy-sell agreements and providing both short-term and long-term access to liquidity, the flexibility that life insurance provides is the reason why so many have wisely made it a cornerstone of their personal finances.

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Insurance services provided by SBSI, Inc.

Securities may be offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment Advisory Services may be offered through Kestra Advisory Services, LLC (Kestra AS). NFP Insurance Solutions is a marketing name and platform used by affiliated and nonaffiliated companies, including but not limited to SBSI, Inc., using the services of NFP Insurance Services, Inc. (NFPISI), a subsidiary of NFP Corp.  PartnersFinancial is a division of NFPISI. Kestra IS and Kestra AS are not affiliated with SBSI, Inc. or NFP Corp. Kestra IS, Kestra AS, and NFP Corp. and its subsidiaries do not provide tax or legal advice and are not Certified Public Accounting (CPA) firms. Not all professionals listed on this site are licensed to offer securities or Investment Advisory Services. Investor Disclosures 

This site is published for residents of the United States only. Registered Representatives of Kestra IS and Investment Advisor Representatives of Kestra AS may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed. Not all of the products and services referenced on this site are available in every state and through every representative or advisor listed. For additional information, please contact our Compliance Department at 844-553-7872.