wealth transfer

Wealth Transfer & Long Term Care

MAKING THE RIGHT CHOICE

Like most people, you have spent your life working hard, raising children, and paying down your mortgage. Along the way, you have been fortunate enough to save some money for retirement.  You now want strategies for maximizing what you have. Also, quite often the desire is to pass along some of your hard earned money to children, grandchildren, church or charity. Maybe you simply want to increase the death benefit available to your spouse. At the same time, most people are concerned with the real possibility of catastrophic, or prolonged illness that would require some form of Long Term Care.  This can be financially devastating.

Single Premium Whole Life (SPWL) Insurance is an ideal single solution to both of these concerns. By simply re-allocating a portion of your invested assets to a SPWL you can:

1. Immediately increase the net worth of your estate. Provide beneficiaries with an inheritance that is free of federal income tax.*

2. Pass money directly to beneficiaries avoiding all probate cost.

3. Have a guaranteed lifetime death benefit. Access your guaranteed cash values for financial emergencies.

4. Receive your death benefit while living in the event of a catastrophic illness.  Such as Terminal Illness, Nursing Home confinement, Home Health Care, Adult Day Care, and Other Qualified Care.

5. Create wealth that no other asset can accomplish, and increase your estate immediately upon issue.

*The information on this site is not intended to provide tax advice. Please contact your Tax Advisor for advice on your personal situation.

HOW CAN A SINGLE PREMIUM WHOLE LIFE (SPWL) POLICY HELP?

Check out the examples below:

1. “Jane”, age 65, a non-tobacco user, has $10,000 in a CD that she wishes to pass to her grandchildren upon her death. Jane moves the $10,000 from the CD, to an SPWL policy, which results in an immediate death benefit of $18,553.00.

Now, instead of Jane’s grandchildren receiving $10,000 upon her death, they will receive $18,553.00, an additional $8,553.00 from what the CD would have provided, close to twice as much in federal income-tax free dollars. Janes is able to accomplish the increased contribution by re-positioning money she already had.

2. “Robert”, age 65, a non-tobacco user, has $25,000 in a Money Market Fund that he wants to pass along to his son upon his death. “Robert” moves the $25,000 from the Money Market Fund to an SPWL policy, and immediately increases the money to be passed to his son to $40,984.00. Close to a $16,000.00 increase in federal income-tax free dollars. And this was accomplished simply by re-positioning money that he already had.

3. “Mary”, age 65, a non-tobacco user, has $50,000 in a CD that she wishes to go to her special needs grandchild upon her death. “Mary” moves the $50,000 from the CD to an SPWL policy, and immediately increases the amount that will pass to her grandchild to $92,764.00. If Mary was is in a 25% tax bracket it would take 28 years to accumulate $42,764.00 at 3% interest.*

Final Thoughts

In the above examples, each one of these people would also have had the advantage of being able to use a portion, or all of the available death benefit, for Living Benefits such as Terminal Illness, Nursing Home (LTC), or Extended Care/Home Health Care/Adult Day Care, if it became necessary. In each case, re-positioning money to an SPWL result in a large increase in the amount of money available for these Living Benefits.

No other asset can match the immediate increase in wealth provided by SPWL policies, and in the process protect you from stock market risk, interest rate fluctuations, and the peace of mind provided by the aforementioned Living Benefits. Contact us for more information.

*The information on this site is not intended to provide tax advice. Please contact your Tax Advisor for advice on your personal situation.