Minimum Deposit Whole Life Insurance

Definition of "Minimum deposit whole life insurance"

Jacques Handal
Jacques Handal Success Real Estate

Ordinary life insurance that generates a first year cash value from the payment of the first year premium. Using this cash value, loans could be made to finance premiums due in the future, with the interest deductible for tax purposes under specified IRS rules. However, the 1986 Tax Code revision appears to have canceled this arrangement.

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