Taxes in 2026: 4 Myths vs. Facts (Stream Plan Edition)
With the Stream Plan, life insurance is more than a death benefit: it’s a living legacy tool. Families can grow wealth, access tax-free income, and make an impact now, without locking up capital or risking personal assets.
Taxes in 2026: 4 Myths vs. Facts (Stream Plan Edition)
This information is for educational purposes only and does not constitute financial, tax, or legal advice.
Life insurance is often misunderstood, especially by high earners. Many see it as a static safety net for the distant future, but the truth is it can be a flexible, tax-efficient tool that works while you’re alive.
In this edition, we’re busting the top four myths about life insurance and premium financing, showing how the Stream Plan turns traditional assumptions upside down, and helps families grow wealth, access potential tax-free income, and achieve generational goals.
Myth 1: Life insurance is only for when I pass away.
Fact: Stream turns life insurance into a living, tax-smart strategy.
- Death benefits are income-tax free under IRS §101(a)
- Cash value grows tax-deferred and can be accessed tax-free for retirement or other goals via policy loans
- Provides liquidity and control while you’re alive, not just after death
Myth 2: Premium financing is too risky or complicated.
Fact: Stream makes leveraged policies transparent and predictable.
- No collateral or personal guarantees required
- Cash value growth can offset the bank loan interest and build long-term value
- Various market conditions and scenarios, that have been stress tested, show tax and financial outcomes clearly
Myth 3: Life insurance cash value is only for retirement or college.
Fact: Stream cash value funds any generational goal—tax-free.
- Think how the cash value can help fun first homes, businesses, weddings, travel, or personal growth
- Unlike 529 plans, there are no penalties or restrictions
- Gives children and grandchildren choice and flexibility
Myth 4: Estate planning is the only tax benefit.
Fact: Stream maximizes tax efficiency beyond the estate.
- Provides tax-free supplemental retirement income
- Supports generational opportunities while you’re alive
- Preserves liquidity in other investments, optimizing overall tax strategy
Bottom Line
With the Stream Plan, life insurance is more than a death benefit: it’s a living legacy tool. Families can grow wealth, access tax-free income, and make an impact now, without locking up capital or risking personal assets.
Premium financing can be an effective tool when carefully planned and monitored, but it is not suitable for every client. For advisors and clients considering this strategy, the key is understanding how costs, risks, and loan structures work and evaluating alternatives like a Stream Plan that can reduce complexity and improve sustainability.
We’d love to hear your thoughts and if this is for you! Contact us at service@thestreamplan.com.
