This is advantageous due to tax efficiency from using corporate dollars to purchase and contribute to the life insurance policy. Accumulation inside the insurance policy is also tax-deferred.
Corp IRP also has built-in flexibility on when funds can be tapped without triggering a tax event. The corporation can obtain a bank loan using the life insurance policy as collateral. The loan proceeds can flow to the shareholder as a bonus or dividend(s). Repayment of the bank loan occurs upon the death of the insured. The death benefit is also paid out to the estate tax-free if the payout is in excess of the bank loan.
The Insured Retirement Plan (“IRP”) is a highly efficient tax planning strategy that takes advantage of the beneficial treatment enjoyed by tax-exempt life insurance.
Typically, there are several main parts to an IRP, and these include:
Royal Rock will help assess your current financial status and future needs to structure an IRP that works for you and your family.
Once your needs have been identified, we will look at the life insurance plan most appropriate for your requirement. Corp IRPs can reduce your tax expense and maximize the growth of your assets.
Your path to a more secure financial future is only a phone call away. To get started, fill in the contact form or call at 778-288-1587. we can get to know each other through an in-person or virtual consultation.