Life Insurance
Life insurance for crypto holders.
Term, whole life, indexed universal life, and final expense. Placed across carriers to solve the problem a crypto estate actually faces: liquidity and tax at the moment of transfer.
Section 01
What happens when your portfolio has crypto.
When a substantial portion of an estate consists of digital assets, transferring that wealth to heirs can be considerably more complex than transferring other assets. Heirs may inherit a significant unrealized gain or loss or an associated tax liability. The tax and estate treatment of digital assets depends heavily on individual circumstances, and the outcomes described here will not apply uniformly. DAG Insurance does not provide tax or legal advice. We strongly encourage you to consult a qualified tax advisor and estate attorney to evaluate how these considerations apply to your specific situation.
Life insurance provides a potential solution. A death benefit delivers cash to the people you name, generally free of federal income tax under IRC § 101(a), to cover estate obligations and family needs without touching the position. Owned by a trust, it can also sit outside your taxable estate.
Section 02
Four kinds of coverage, and what each is for.
There is no single best policy. Each does a different job at a different cost.
Term life
Coverage for a set period at the lowest initial cost. A death benefit, no cash value. Fits a defined, time-bound need. Coverage ends with the term unless renewed or converted.
Whole life
Permanent coverage with a guaranteed death benefit and guaranteed cash value, backed by the claims-paying ability of the issuer. Higher, level premiums. Loans and withdrawals reduce the death benefit.
Indexed universal life
Permanent coverage with flexible premiums and index-linked cash value, subject to caps and floors. It is not invested in the market and is not a security. Underfunding can cause it to lapse.
Final expense
Smaller permanent coverage for funeral and end-of-life costs, with simplified underwriting. A narrow, specific need.
Section 03
How it fits with the rest of your plan.
A policy you own personally is generally part of your taxable estate. A policy owned by a properly structured irrevocable trust may sit outside it. Your estate attorney drafts the ownership structure and DAG Insurance places the policy through licensed agents. For an estate above the federal exemption, coordinated planning can be the difference between a benefit that reaches heirs intact and one diminished by tax and probate.
The tax and estate treatment described here depends on individual circumstances. DAG Insurance does not provide tax or legal advice. We encourage you to consult a qualified estate attorney and tax advisor to determine how these considerations apply to your situation.
Benefits
What the coverage does for you.
Income-tax-free death benefit
Life insurance death benefits are generally received free of federal income tax under IRC § 101(a), though treatment depends on individual facts and circumstances.
Liquidity without a forced sale
The benefit can provide cash to cover estate taxes and family needs, helping heirs avoid liquidating assets at an inopportune time. Consult a qualified tax advisor and estate attorney about your situation.
Matched to the need
Term for time-bound needs, permanent coverage where lifelong protection or cash value is the goal.
Cash value you can use
Whole life and indexed universal life build cash value, with loans and withdrawals reducing the death benefit.
Trust-owned structures
Owned by a trust your attorney drafts, with DAG Private Client coordinating, to keep the benefit outside the taxable estate.
Independent carrier selection
DAG shops the market, subject to carrier and state availability and underwriting.
Did you know
An irrevocable life insurance trust can keep the death benefit outside the taxable estate, which matters above the federal exemption. The 40 percent estate tax rate applies only to the amount over the exemption. Not legal or tax advice.
2026 federal estate tax exemption
$15 million per individual. Amounts above are taxed up to 40 percent, before any state tax.
FAQ
Frequently asked.
Next step
It's easier to set up before you need it.
A coverage review starts with what you hold, who depends on it, and what your current coverage does. Most people leave with a written summary and a clear view of the gap.
Insurance disclosures
Insurance products and services are offered through DAG Insurance, a South Dakota limited liability company licensed as an insurance producer ("Xure Legacy Insurance Agency"), or its affiliates. DAG Insurance does not provide investment advisory or brokerage services. Investment advisory services are provided by its affiliate, DAG Wealth, an SEC-Registered Investment Adviser. Xure Legacy Insurance Agency is not a Registered Investment Adviser and does not provide investment advisory services. Administrative and support services are provided by DAG Private Client.
Insurance products are not securities, are not FDIC insured, and are not guaranteed by any federal or state government agency. Policy values may fluctuate and benefits are subject to the claims-paying ability of the issuing insurance carrier. Clients are encouraged to review all policy documents carefully prior to purchase.
DAG Insurance and its affiliates operate in connection with digital asset and alternative investment strategies, including the potential use of permanent life insurance products for estate liquidity, wealth transfer, and risk management planning in portfolios that may include digital assets. Life insurance products involve their own risks and considerations, including policy performance versus illustrations, carrier financial strength, liquidity provisions, premium sustainability, and tax treatment. Investing in digital assets involves substantial risk, including but not limited to: extreme price volatility and the potential for significant or total loss of principal; cybersecurity, hacking, theft, and custody risks; regulatory, legal, and tax uncertainty; illiquidity; and the possibility that such investments may not be suitable for all investors. Digital asset markets have historically experienced drawdowns. Past performance is not indicative of future results. All investments and insurance products involve risk of loss.
Recommendations regarding insurance products are subject to a suitability analysis based on the client's individual circumstances. Any compensation arrangements, including trails or other payments to affiliates or individuals, are disclosed as required by applicable regulations. Clients should consult with qualified insurance, legal, and tax professionals. Additional disclosures are available upon request.
Compensation disclosure: Certain licensed financial professionals associated with DAG Holdings may receive referral fees or commissions for insurance products sold through Xure Legacy Insurance Agency. This compensation creates a conflict of interest, as it may incentivize recommendations based on compensation rather than on client need. Clients are not required to purchase insurance products through Xure Legacy or any DAG affiliate. All referrals and recommendations are made only where determined appropriate for the client's specific needs. All compensation is disclosed prior to purchase.
Disclosures
DAG Holdings Co is a holding company that does not provide investment advisory, brokerage, administrative, or insurance services to clients. DAG is not a law firm, does not provide legal or tax advice, and does not provide tax preparation services. Tax matters are handled through referrals to independent qualified tax professionals.
DAG Private Client services involve estate matters that require qualified independent counsel in the applicable jurisdiction. LLC formation, trust drafting, and estate planning services are provided in coordination with or by qualified independent legal counsel licensed in the applicable jurisdiction.
Asset protection structures, including Wyoming LLCs and trusts, do not guarantee protection against all claims, creditors, or losses. Outcomes depend on specific facts, jurisdiction, and applicable law.
Insurance products and services are offered through Xure Insurance or its affiliates.
Investment advisory services are offered exclusively through DAG Wealth, an SEC-Registered Investment Adviser (CRD No. 328627). Registration with the SEC does not imply a particular level of skill or training. Form ADV and Form CRS are available upon request or at www.adviserinfo.sec.gov.
Custody arrangements with third-party independent qualified custodians reduce certain risks but do not eliminate them.
Investing in digital assets involves risk, including the possible loss of principal. Digital assets are highly volatile and may not be suitable for all investors. Past performance is not indicative of future results.
Specific fee schedules, scope of engagement, conflicts of interest, and material business practices are disclosed in writing before engagement and in Form ADV Part 2A for the investment-advisory portion.
The information on this site is for general educational purposes and is not legal or tax advice.