Broker Check
Jose M Borro II
Jose M Borro II
AirMar Wealth Management Financial Planner
https://www.prudential.com/advisor/jose-borro (561) 206-5366

Jose M. Borro II, CPFA®
Founder, AirMar Wealth Management

Born and raised in Naples, Florida, Jose is the son of Cuban immigrants whose sacrifices shaped his values: freedom, family, and opportunity. That legacy is the heart of everything we do at AirMar.

After more than a decade in the financial industry, Jose founded AirMar Wealth Management to offer something often missing in finance—human advice, grounded in trust, values, and lived experience. Every strategy we create is designed around one central truth: your life comes first.

When he’s not helping clients shape their futures, Jose is enjoying his own—boating along the Atlantic with his wife Lauren, adventuring with their son Judah, and soaking in the Florida lifestyle that inspires the AirMar name.

Licenses & Credentials:

  • FINRA Series 7 & 66 held with LPL Enterprise
  • Florida 2-15 Life, Health & Variable Annuity License
  • Certified Plan Fiduciary Advisor (CPFA®)
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When Life Insurance Becomes Taxable

Insurance Read Time: 3 min

In 1900, the average life expectancy of a newborn was only 32 years old. By 2025, that number more than doubled to 73 years, and the trend is expected to continue.1,2

Living this long may have unexpected tax consequences. Here’s why.

Many older life insurance policies mature at a specific age. If the insured individual attains that age, the policy’s cash value may be paid out to the policy owner in lieu of a death benefit payment.3

Tracking Taxes

This payout may be taxed as ordinary income on the amount that exceeds the policy owner’s cost basis (or the sum of after-tax premiums). The after-tax amount would then become part of the policy owner’s estate and may be subject to further taxation upon the policy owner’s death.4,5

If a policy is owned by an irrevocable trust, the trust is responsible for any tax owed, though the proceeds would not become part of the insured’s estate if the insured had no incidents of ownership.5,6

Managing the Taxable Risk

This taxable risk may be mitigated through a maturity extension rider, which allows the policy to continue until the death of the insured. Many newer life policies come with a higher maturity age (like 120) or an indefinite period.7

1. OurWorldinData.com, March 2026
Macrotrends.net.org, 2026
3. Several factors will affect the cost and availability of life insurance, including age, health, and the type and amount of insurance purchased. Life insurance policies have expenses, including mortality and other charges. If a policy is surrendered prematurely, the policyholder may also pay surrender charges and have income tax implications. You should consider determining whether you are insurable before implementing a strategy involving life insurance. Any guarantees associated with a policy are dependent on the ability of the issuing insurance company to continue making claim payments.
4. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation.
5. IRS.gov, 2026
6. Using a trust involves a complex set of tax rules and regulations. Before moving forward with a trust, consider working with a professional who is familiar with the rules and regulations.
7. SEC.gov, 2026

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

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