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Pay Life Insurance Premiums with Pre-Tax Dollars

Maximize the efficiency of your retirement plan by integrating life insurance. Protect your future while reducing your current tax bill.

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Why Integrate Life Insurance?

A smarter way to buy the protection you need.

Tax-Deductible Premiums

Pay for your life insurance with pre-tax dollars through your qualified plan, effectively lowering the cost.

Estate Planning

Create a tax-efficient vehicle to transfer wealth to your heirs or provide liquidity for estate taxes.

Business Continuity

Fund Buy-Sell agreements or Key Person insurance using tax-advantaged plan assets.

How It Works

1

Policy Purchase

The qualified plan purchases the life insurance policy on your life.

2

Premium Payment

Premiums are paid from the plan's assets (your pre-tax contributions).

3

Tax Treatment

You only pay tax on the 'economic benefit' cost, which is a small fraction of the actual premium.

Client Experiences

”

"I needed a large policy for estate planning. Paying for it through my Cash Balance Plan saved me thousands in taxes."

R
Robert G.
Surgeon
”

"MyPensionTree showed me how to leverage my business success to protect my family. Brilliant strategy."

J
Jennifer A.
CEO
”

"Seamless integration. They handled the coordination with the insurance carrier and the plan administration."

T
Thomas B.
Architect

Frequently Asked Questions

You can distribute the policy to yourself (taxable event) or purchase it from the plan for its cash value.

Yes, there are 'incidental limits' based on the type of plan (e.g., 401(k) vs. Defined Benefit). We ensure your plan stays compliant.

Technically yes, but it is most commonly used with permanent life insurance (Whole Life or Universal Life) due to the cash accumulation features.

Secure Your Legacy Tax-Efficiently

Find out if including life insurance in your plan is right for you.

Calculate Now

Protect Your Family • Optimize Your Taxes

CPA Referral Program
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My Pension Tree, LLC is a group of Qualified 401(k) and Pension Plan Consultants. We consult self-employed individuals and small business owners on the design, setup, and administration of 401(k) and Cash Balance Pension plans.

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