Life Insurance Tax Benefits–Naples Insurance School

Many people who are uninsured do not realize the tax benefits that come with a life insurance policy.

The importance of these benefits cannot be overstated.

They can help alleviate the tax burden your clients and their family will feel in retirement.

Understanding your clients’ fears can help you understand their perspective, especially if their fears keep them (or have kept them) from buying a life insurance policy.

For example, most people are afraid of running out of money during retirement.

In fact, they often list this as their top retirement concern.

You can put their fears at ease by informing them about the possibility to access life insurance money on a tax-free basis in retirement.

This benefit is especially important for high net worth clients, they may be getting taxed at high rates to access other money, such as traditional IRAs.


life insurance tax benefits

Death benefits

Death benefits are often paid to beneficiaries tax-free, decreasing the tax burden on loved ones.

However, if those benefits are received as an annuity they may be taxable. Likewise, the interest accrued on a policy is potentially taxable.

Let your apprehensive clients know that some types of life insurance (for example, whole life policies) may pay dividends, yet they are not taxed like regular capital gains.

Instead, those dividends are considered a return on part of a premium paid. Therefore, they’re not taxed unless the amount of the dividend exceeds the premiums paid.

If you succeed in highlighting these tax benefits for apprehensive clients (or prospects), you’ll be more likely to assuage their fears about one of the most stress-inducing prospects of someone’s life: their passing.

For more information or to sign up for health and life insurance education, visit our website,, or give us a call at 239-344-7510.

naples real estate school

About Larson Educational Services:

Utilizing 40 years of real estate training and professional education experience, Florida real estate school Larson Educational Services is the premier provider of Florida real estate licensing, exam preparation, post-licensing, CAM licensing, mortgage loan originator licensing, and continuing education in Southwest Florida. Classes are available in Fort Myers, Naples, Sarasota, and online. We are an approved Florida Real Estate School (License #ZH1002299), Florida CAM School (License #PRE31), Florida Insurance School (License # 370501) and NMLS Approved Course Provider.

Larson Educational Services

13040 Livingston Rd. #12,

Naples, Florida



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