Combination Insurance
Combine the large temporary coverage of term insurance with the long-term protection and cash accumulation benefits of permanent insurance.
GET A QUOTEKey Benefits
Tax-Efficient Growth
Have the potential to grow tax-efficient wealth by investing your premiums into assets you choose.
Flexibility
Choose how you want to build wealth, whether that’s a safe and steady IUL policy or invest directly in the market with a VUL policy.
Safe
An additional term policy allows you to protect your temporary liabilities, such as a mortgage or young children, with the most coverage today.
Max protection plus tax-free wealth
Have a newborn or a mortgage that you need to protect? Term life insurance can offer the most affordable temporary protection for a high coverage amount, while permanent insurance offers lifetime coverage and additional health and savings benefits.
Lots of liabilities? Combination could be for you
A combination policy is best for someone who has liabilities they wish to protect today and still wish to accumulate tax-efficient wealth for the future.
We can design a unique combination life insurance strategy that allows you to get the maximum coverage for the first 10, 20, or 30 years, after which you will still have an amount of coverage that will last for the rest of your life.*
*Policy must be in force and premiums paid.
FAQs
How does tax efficient cash accumulation work in a life insurance vehicle?
How does tax efficient cash accumulation work in a life insurance vehicle?
Tax-efficient cash accumulation are only available in permanent life insurance policies, not in term life insurance. The premiums you pay into a permanent life insurance policy will cover the cost of insurance (which provides the death/chronic illness/critical illness coverage) and fees, and the rest is saved and grows in a tax deferred investment account. You can choose how the investment account grows and access the amount tax free after a certain number of years (typically 10-15) for any purpose. There is a penalty for accessing your cash amount before the specified number of years. Here are the tax codes that pertain to the tax-efficiency of life insurance in the U.S.: Death Benefits Policy death benefits are usually paid to beneficiaries income tax-free according to IRC Section 101(a). Benefits paid out before the insured’s death because of chronic or terminal illness are tax free according to IRC Section 101(g)1. Policy Cash Values Cash values can grow within the policy without being subject to taxes according to IRC Section 72. Withdrawals up to the amount of the policy owner’s tax basis are not subject to income tax according to IRC Section 72. Cash values exceeding the owner’s tax basis may be borrowed from the policy income tax free as long as the policy stays in force according to IRC Sections 72 and 7702 Tax-Free Exchanges The owner may exchange an existing for a new one free of income taxes according to IRC section 1035. The owner may exchange a life insurance policy for an annuity free of income taxes according to IRC Section 1035 Overall, life insurance death benefits, healthcare riders, and cash value can be accessed tax-free as long as the guidelines towards saving in the policy are followed appropriately. You can consult an Amplify licensed expert to make sure you are not exceeding the legal amount of cash in your policy to maximize your tax-free returns.
Can I have both term and permanent life insurance?
Can I have both term and permanent life insurance?
Yes. Many of our customers own a combination of term and permanent life insurance for the different purposes that they serve. Term life insurance offers affordable coverage for a period of time when you have high liabilities while permanent insurance offers living benefits such as long term care and tax efficient savings.
More questions?
We have answers.
Life insurance can be complicated. Luckily, we're always here to help.