You have a choice: 100 percent taxable, or 100 percent tax-free.

Adequate life insurance coverage is an important part of your financial plan. With tax-smart planning, you can lock in, completely free of federal income tax, the benefits you receive from life insurance policies.

But if you make the wrong moves, those benefit payments could become 100 percent taxable. In other words, the wrong moves help you create taxable income out of thin air.

This article shows you how to play the life insurance game the tax-smart way.

How Life Insurance Works for Estate Taxes

You might buy life insurance for a variety of reasons such as

taking care of the family should you die prematurely,

having the business continue after your death, or

providing liquid funds to pay your estate ... Log in to view full article.