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Back to Track 2: Life Insurance

Course 2.2 · 50 minutes

The Tax Rules of Life Insurance: Cash Value, Loans, MECs, and 1035 Exchanges

Know exactly when life insurance money is tax-free and when it is not, so you can use cash value without a surprise bill.

Who it is for
Owners of permanent policies and anyone considering one.
Runtime
50 minutes

Pre-order: this course is still in development. Your purchase includes its materials as they are published in your portal. No release date is confirmed. Buy 5 or more and every course is 30% off.

See the full trackSee the full curriculum

After payment is confirmed and your access is set up, the files listed below can be downloaded from your portal. Any unpublished materials will be added when ready, at no additional charge.

Files currently available

  • Policy Cash Value Tax Calculator Guide.
  • Policy Cash Value Tax Calculator.
  • 1035 Exchange Checklist.
  • Transfer for Value Decision Tree.
  • Questions for Your Agent.
  • Slide deck.
  • Visual: Roadmap.
  • Visual: Definition Tests.
  • Visual: Basis First.
  • Visual: Policy Loan Lapse.
  • Visual: Seven Pay Test.
  • Visual: Mec vs Non Mec.
  • Visual: 1035 Flowchart.
  • Visual: Exchange Matrix.
  • Visual: Transfer for Value.
  • Visual: Worked Example.
  • Visual: Access Decision Tree.
  • Visual: Overfund Design.
  • Workbook.
  • The narrated lesson. 50 minutes, cued to the deck, with chapter markers by lesson. Added to your portal when published, at no extra cost. This purchase does not guarantee that the narrated lesson is available today.

What the course covers

  • 01The definition of life insurance in the tax code and why it matters5 min
  • 02Tax-deferred growth, withdrawals, and recovering your basis first7 min
  • 03Policy loans: tax-free until the policy lapses6 min
  • 04Modified endowment contracts: the seven-pay test and last-in, first-out taxation7 min
  • 05Surrenders and 1035 exchanges: moving to a better policy without tax7 min
  • 06The transfer-for-value rule and its exceptions5 min
  • 07Worked example: loan versus withdrawal versus surrender on a 200,000 dollar cash value policy7 min
  • 08Tricks of the trade: overfunded non-MEC design and partial exchanges3 min
  • 09Mistakes and traps: lapsing with a loan outstanding and accidental MECs3 min

How it fits: Requires 2.1. Feeds 2.3, 2.4, and 2.6.

The standard every course holds

  • A narrated lesson of 45 to 60 minutes, produced as audio
  • A designed slide deck you download and keep
  • A computational workbook that runs the actual legal tests
  • A toolkit of checklists and protocols
  • A legal authority appendix carrying the two-pass vetting protocol

Written for a diligent reader with no legal education. Professionally narrated using a studio voice model of Brian T. Boyd. The course is recorded instruction, not a live consultation.

Where this course sits

Track 2: Life Insurance

This course is one step in a track built around a single outcome. See the full build order and the other courses that get you there.

Back to this track

Educational material from the private client curriculum of Brian T. Boyd. This is legal education for a general audience, not legal advice, and no attorney-client relationship is created by purchasing, viewing, or using it. Tax outcomes depend on your facts and your state.