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Show Life Insurance: Source Of Tax Benefits Thosr whn own wholi- life insurance policies are in a unUe position to keep traditional tradi-tional ta.x advantages. The substantial tax liene-fits liene-fits iwhile the policy is in I'orcei include: the aliilily to accumulate the cash value cif the policy without paying income in-come tax: tax-free loans; and lieneficiaries who don't have to pay income taxes on the proceeds of a policy they receive. re-ceive. Tax reform hihlihts another an-other major attraction of muny single-premium policies: tax-free access to funds in the form of policy loans. As the deductibility of consumer credit interest expense is phased out over a five-year period, this feature will look even better, says Jack Hara-hurda |