inside buildup

inside buildup

The cash value increases in a life insurance policy. Inside buildup is free of income taxation during the period of buildup, thus making cash-value insurance a more desirable investment vehicle for people in high income-tax brackets.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
The inside buildup under A's life insurance contract immediately prior to the sale to B was $14,000 ($78,000 cash surrender value less $64,000 aggregate premiums paid).
Income from sales or settlements of life insurance contracts
The owners of cash value life insurance and annuity contracts have long been able to defer paying tax on the income accruing inside these products--that is, on the "inside buildup." (1) Early insurance products provided their contract owners with only a low, guaranteed return close to the risk-free rate of return.
Beating the "wrap": the agency effort to control wraparound insurance tax shelters
* The owner would be taxed on the inside buildup in the policy beyond his cost basis.
Expanding Tax-Favored Retirement Benefits
The report found that the law still provides favorable tax treatment of investment income (inside buildup) earned on qualified life insurance contracts and annuities.
Treasury Department issues insurance tax reports
These are items such as tax-exempt interest income (net of allocable carrying costs) and the "inside buildup" of income in life insurance contracts (net of attributable premiums).
ACE lite: Congress eases the AMT computation. It's still a wicked brew!
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