Whole life insurance is a type of permanent life insurance that provides coverage for the insured's entire life, as long as premiums are paid. One specific type of whole Global 360 Life insurance is the 134 Norman plan. This article will delve into the key features, benefits, Global 360 Life and considerations of 134 Norman whole life insurance.
What is 134 Norman Whole Life Insurance?
The 134 Norman plan is a variation of whole life insurance that is often used in the context of business and estate planning. It is named after Section 134 of the Internal Revenue Code, which outlines the tax treatment of life insurance policies. The "Norman" part of the name refers to a specific type of policy structure that was developed by the Norman-Larsen Agency, a well-known insurance consulting firm.
Key Features
Permanent Coverage: Like other whole life policies, 134 Norman provides coverage for the insured's entire life, as long as premiums are paid.
Cash Value Accumulation: The policy builds cash value over time, Global 360 Life which can be accessed through loans or withdrawals.
Fixed Premiums: Premiums are fixed and do not increase over time, making it easier to budget for.
Tax Advantages: The policy may offer tax-deferred growth on the cash value and tax-free death benefits to beneficiaries.
Benefits
Estate Planning: Global 360 Life 134 Norman policies are often used in estate planning to provide liquidity to cover estate taxes and other expenses.
Business Succession: In a business context, these policies can be used to fund buy-sell agreements, ensuring a smooth transition of ownership.
Wealth Accumulation: Global 360 Life The cash value component can serve as a savings vehicle, providing a source of funds for future needs.
Tax Efficiency: The policy's tax advantages can help minimize the tax burden on the insured and their beneficiaries.
Considerations
Premium Costs: Whole life insurance policies, including 134 Norman, typically have higher premiums compared to term life insurance.
Complexity: The structure and tax implications of 134 Norman policies can be complex, Global 360 Life requiring professional advice to fully understand.
Surrender Charges: Early withdrawal of the cash value may incur surrender charges, Global 360 Life reducing the policy's value.
Health Requirements: Global 360 Life As with any life insurance policy, the insured must meet certain health requirements to qualify.
Conclusion
134 Norman whole life insurance is a powerful tool for estate and business planning, offering permanent coverage, cash value accumulation, and tax advantages. However, it is essential to consult with a financial advisor or insurance professional to determine if this type of policy aligns with your financial goals and Global 360 Life needs. Understanding the intricacies of 134 Norman whole life insurance can help you make informed decisions and Global 360 Life secure your financial future.