By Michael Nedreski
The recently passed “Big Beautiful Bill” has brought sweeping changes to tax rules, retirement planning, and wealth transfer strategies. While most of the media coverage has focused on income taxes and retirement accounts, an equally important consideration is how these changes affect your life insurance planning.
Many provisions in the bill adjust estate tax exemptions, gift limits, and wealth transfer thresholds. For families and individuals with significant assets, these changes could increase the portion of wealth subject to taxes. That makes strategic planning—and the role of life insurance—more important than ever.
Life insurance, particularly permanent policies like Whole Life or Indexed Universal Life (IUL), can be a key solution in this environment. Death benefits are generally income tax-free, and with proper planning, they can also be structured to avoid estate taxes entirely. For example, placing a policy inside an Irrevocable Life Insurance Trust (ILIT) can ensure the proceeds are excluded from your taxable estate, allowing more of your wealth to pass to your heirs instead of going to taxes.
The bill’s new rules may also open the door to funding policies more aggressively, building greater cash value over time. That cash value can be used during your lifetime for retirement income, emergencies, or business opportunities, all while maintaining the policy’s protection. In this way, life insurance serves both as a safeguard for your family and as a flexible, living financial resource.
The bottom line: The “Big Beautiful Bill” doesn’t diminish the role of life insurance—it underscores it. Reviewing your policies now can help ensure they’re optimized for the new tax landscape and aligned with your long-term goals.
If you’d like to get in touch with the White Oak Wealth Partners team, contact us by calling 814-835-4551, emailing MICHAEL.NEDRESKI@LPL.COM, or scheduling an appointment here.
About Michael
Michael Nedreski is Founder & Independent Wealth Coach at White Oak Wealth Partners, a specialized financial lifestyle and wealth management firm serving entrepreneurs, business owners, executives, and their families. Mike has 30-plus years of experience in the financial services industry and is committed to serving his clients through holistic financial planning, disciplined investment strategies, and proactive personal service.
A native of Erie, Pennsylvania, Mike began his career in the financial services industry in 1988. He has earned the Chartered Retirement Planning CounselorSM (CRPC®) designation conferred by College for Financial Planning (188-LPL). Mike is also an active member of the Financial Services Institute (FSI) and Financial Planning Association (FPA).
When not working, Mike enjoys spending time with his wife, Amy, and their children. He volunteers in his community and at his church and his children’s schools. An outdoors enthusiast, Mike loves hunting, fishing, golfing, and spending time near or on the water. He also enjoys working out and watching some of his favorite sports teams, the Pittsburgh Pirates and the Cleveland Browns. To learn more about Michael, connect with him on LinkedIn.