What Is A Life Insurance Wrapper?

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   David RacichPRO

   Fountain Hills, Arizona

   A life insurance wrapper is a terrible metaphor for the tax advantaged features of a life insurance policy that allows crediting methods like interest rates, indices and separate subaccounts using equities and bond investments. Life insurance accumulated tax deferred and a TAMRA compliant non modified endowment policy can generate tax free income provided that the life insurance policy is kept in force the life of the insured. The life insurance wrapped around the crediting method is the marketing approach here.
    

   Answered on June 28, 2013

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