What is ‘Waterfall Concept’
A life insurance plan that provides a tax benefit in regards to intergenerational transfers of wealth. The concept occurs when a tax-exempt insurance policy is rolled over to a child or a grandchild. The origin of this term is derived from the fact that this insurance plan is similar to waterfalls in that it only flows downwards.
Explaining ‘Waterfall Concept’
The tax benefit occurs when the initial insurance policy is rolled over to the child or grandchild. After the transfer there are no more tax breaks, and so any funds that are withdrawn from the policy are subject to normal tax liability. However, clients can implement different variations on the waterfall concept to meet different objectives.
Further Reading
- Wood and Waterfall: Puppetry training and its anthropology – www.tandfonline.com [PDF]
- Bounds on the value of waterfalls: a case study from a hydropower project – www.tandfonline.com [PDF]
- Performance evaluation of dynamic monitoring systems: the waterfall chart – www.tandfonline.com [PDF]
- Two adjustable waterfalls for evaluating fish jumping performance – www.tandfonline.com [PDF]
- Applying Agile Methodology to regulatory compliance projects in the financial industry: A case study research – www.journalofappliedresearch.com [PDF]
- Adopting a combination of Scrum and Waterfall methodologies in developing Tailor-made SaaS products for Thai Service and manufacturing SMEs – ieeexplore.ieee.org [PDF]
- Soft mode dispersion and 'waterfall'phenomenon in relaxors revisited – www.tandfonline.com [PDF]
- Tourist carrying capacity in Huangguoshu waterfall resort – en.cnki.com.cn [PDF]
