Life Insurance Loans Are Not Income: Shootin’ It Straight With Stan
“Fun With Annuities” The Annuity Man Podcast
Release Date: 12/24/2025
Consider Giving Your Money Away Now: Shootin’ It Straight With Stan
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In this episode, The Annuity Man discussed: Giving while you’re alive to create a meaningful impact Letting background inform legacy decisions Balancing support with personal responsibility Building a living legacy through intentional planning Key Takeaways: Providing financial support earlier in life can influence long-term stability and opportunity. Assistance during early adulthood often carries greater practical value than delayed inheritance. Financial philosophies are shaped by upbringing and lived experience. Recognizing these influences can help...
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Life Insurance Loans Are Not Income: Shootin’ It Straight With Stan
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In this episode, The Annuity Man discussed: Understanding why life insurance loans are not income Questioning glossy tax-free income pitches Keeping life insurance simple and purpose-driven Testing illustrations and setting clear expectations Key Takeaways: Loans from a life insurance policy are not income, just as bank loans are not income. They are tax-free only because they must be repaid, not because they create earnings. Calling them “tax-free income” is a misleading sales framing. Many life insurance illustrations rely on optimistic assumptions...
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Death as an Annuity Strategy: Shootin’ It Straight With Stan
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In this episode, The Annuity Man discussed: Distinguishing annuity types Applying the PILL strategy Interpreting annuity yields Securing contractual understanding Key Takeaways: Understanding the purpose of different annuities is crucial: MYGAs provide guaranteed interest on principal like a CD, while SPIAs deliver a lifetime income stream tailored to longevity. Each serves a distinct financial goal. The "PILL" framework—Principal protection, Income for life, Legacy, Long-term care—helps determine whether an annuity aligns with your needs and long-term...
info_outlineIn this episode, The Annuity Man discussed:
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Understanding why life insurance loans are not income
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Questioning glossy tax-free income pitches
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Keeping life insurance simple and purpose-driven
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Testing illustrations and setting clear expectations
Key Takeaways:
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Loans from a life insurance policy are not income, just as bank loans are not income. They are tax-free only because they must be repaid, not because they create earnings. Calling them “tax-free income” is a misleading sales framing.
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Many life insurance illustrations rely on optimistic assumptions and attractive projections. High internal fees and commissions often benefit the agent more than the client. If a pitch sounds too good to be true, it usually deserves deeper scrutiny.
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Life insurance works best when focused on its core purpose: a tax-free death benefit. Level term coverage maximizes protection while minimizing cost and complexity. Avoid products with indexes, market ties, or unnecessary moving parts.
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Running illustrations at 0% growth reveals the true impact of fees and loan costs. This stress test shows whether a policy can sustain itself over time. Life insurance should be positioned as protection, not a tax-free income strategy.
"With life insurance, you buy the most death benefit you can for the least amount of money. It's that simple." — Stan The Annuity Man
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