The reduced income tax rates for businesses have led many business owners to consider whether it makes more sense to accumulate life insurance values inside a C corporation or outside. A closer look suggests that the benefits inside the company might not be as profound as owners expect. In addition, there are significant nontax considerations that should be weighed.
Author: April Caudill, JD*, CLU, ChFC, AEP, is a business and advanced solutions director with Principal Financial Group®, Des Moines, IA 50392. She is part of the business and advanced solutions team that assists advisors with tax and legal concepts related to advanced planning and business owner needs.