12/16/2023
The University of Michigan Football Head Coach, Jim Harbaugh elected to put a portion of his compensation into this exact vehicle. Rather than Michigan paying it to Harbaugh, the University pays it directly into a Permanent Whole Life Insurance Policy which is owned by Harbaugh individually. The reason this becomes so lucrative is because:
-Even though the contribution is taxed “on the way in,” similarly to a Roth-IRA, 100% of the growth and appreciation is tax free when withdrawn from a life insurance policy. Compared to a Roth, where the contributions are withdrawn tax free, any appreciation is taxable at the corresponding rate.
-Another major benefit of the Whole Life Insurance Policy is the death benefit paid to your Estate upon your death
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