Asset Protection

Protecting Your Assets

Life insurance can be a useful tool for growing and protecting assets. Life insurance has several legal & tax benefits that other asset vehicles do not have. In fact, life insurance can achieve many different goals, including:

  • Accumulating a retirement fund without contribution limits¹
  • Safeguarding assets from creditors while still maintaining liquidity²
  • Using an Irrevocable Life Insurance Trust to transfer assets, avoiding creditors & estate taxation³

Living Benefits of Life Insurance

In addition to asset protection, life insurance can provide many living benefits. These benefits include:

  • First-In-First-Out cash withdrawals
  • Low-interest policy loans
  • Retirement income
  • Asset spend-down permission

To learn more about life insurance benefits, please visit our Scheduling Page.

¹Although life insurance policies do not have contribution limits, there are cases where an insurance policy can become a Modified Endowment Contract, resulting in Last-In-First-Out withdrawals and 10% penalties on distributions made before age 59½.
²Some states do not protect (or may limit protection of) life insurance cash value and/or proceeds from creditors. It is best to check your state’s specific statute. Please see the Minnesota Statute.
³Twin Cities Mutual does not offer legal, tax, investment or financial advice. It’s best to seek counsel with your attorney.