Estate Planning Benefits: Tax-free death benefits bypass probate when properly structured. ILITs remove proceeds from estate tax calculations.
Permanent Life Insurance Cons
Prohibitive Cost: 5-15x higher premiums than term for equivalent death benefits. Destroys household cash flow for middle-income families [^41^][^43^].
Poor Investment Returns: 2-4% guaranteed returns trail inflation and stock market performance by significant margins [^44^][^53^].
Front-Loaded Fees: Years of premium payments required before cash value builds meaningfully. Early surrender triggers massive losses.