Case Study 1: The $399,000 Tax-Free Windfall

Client Profile:

-39 years old
-Emergency Room doctor for 15 years
-Runs a Tropical Medicine Practice


The doctor had taken out a life insurance policy a number of years ago and had been paying the premiums personally.  We realized that the policy had increased in value, and so we obtained an actuarial report that deemed its current fair market value to be $399,000.


On our advice, the client transferred the policy to his corporation, which now owes him $399,000, an amount he can withdraw at any time, tax-free!