Buying Life Insurance With Tax-Deductible Dollars Financial Services Advisor (10/01/01) Vol. 144, No. 5 p.38; Connolly, Jim
Financial planning professionals are able to pay the premiums from pre-tax accumulated plan assets by making the purchase of life insurance part of their qualified retirement plan. Although retirement plans may have to be revised to allow the maneuver, buying life insurance inside the plan makes it possible for policyowners to raise their protection. However, there are drawbacks to the proposal. People who go this route have to pay taxes on the portion of the premiums used to buy pure life insurance.