The title of the article reads: “Silicon Valley Billionaire Buys Record $201B Life Policy” After the initial shock, I read the article and it should state “$201M”, or 1/1000th of the title amount. Still a huge policy.
Borrowing money from a large cash value life policy is very beneficial for tax purposes. I saw the headline error as well, B means Billion.
If you have the money, large cash value whole life or UL makes a ton of sense. Borrowing on the cash value limits the total percentage access to the capital but does not create a taxable event. If they only let you borrow 80% but your tax rate is 40%+ then you come out way ahead.
The title of the article reads: “Silicon Valley Billionaire Buys Record $201B Life Policy” After the initial shock, I read the article and it should state “$201M”, or 1/1000th of the title amount. Still a huge policy.
If his finances are in order, why would he need this policy?
Borrowing money from a large cash value life policy is very beneficial for tax purposes. I saw the headline error as well, B means Billion.
If you have the money, large cash value whole life or UL makes a ton of sense. Borrowing on the cash value limits the total percentage access to the capital but does not create a taxable event. If they only let you borrow 80% but your tax rate is 40%+ then you come out way ahead.
Good stuff.