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.
The exposure
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.
Coverage choices
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.
How it fits the plan
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.
Frequently asked questions
Question 01 of 05
Which policy type is right for me?
It depends on what the coverage is meant to accomplish and for how long you need it. A coverage review, guided by our licensed professionals, sorts these questions against your specific circumstances. We encourage you to schedule one to see what fits your situation.
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.