WHAT ARE THE TAX IMPLICATIONS OF A GRP PLAN?
- FAIRCHOICE Mortgage Co.
All dividends paid into the plan are tax-free.
All values accumulate in the plan tax-free.
On the death of the insured child, the Life Insurance Value is paid out to the chosen beneficiary/beneficiaries, tax-free.
The plan can be collapsed at any time and the cash value withdrawn. In this case the withdrawn amount will be subject to taxes at the marginal tax rate of the plan owner.