On the money you have saved and/or invested, would you rather pay Federal taxes now, later or do not pay them at all?
My guess is that you would prefer to pay as little tax, legitimately, as possible.
I can help you. Let me explain.
Many seniors put money in annuities for accumulation purposes. They don’t need the money for income. But, they are concerned that their “surviving spouse” may need more after their passing. They don’t know that there is an answer. It’s Single Premium Life.
Hold on now, before you quit reading, let me make my case. Let us say you have “Declared Rate” annuities that are at a 3% Guaranteed Rate. Why not surrender a portion — or all in many cases, of the annuities and put the money in a single premium life policy? You can get the full underwriting version or simplified issue. Yes, there will be taxes on their gain. But who cares? Let’s look at the alternative.
For example, one of our clients is a 65 year old female who had approximately $100,000 in an annuity. Her cost basis was approximately $89,000. She wanted to leave her money in this policy to her grandkids. So, policy was liquidated, taxes paid on $11,000 and we turned her $100,000 into $181,000. Specific numbers would be specific to your case, including age, gender, etc.
This is a simplified issue policy … no exams. Oh, by the way, it would also pay $3,600 per month in a nursing home and $1,800 for home health care. If this was a male that wanted to leave money to a surviving spouse, the death benefit would be approximately $150,000.
Here are the questions — how long would it take the lady to have $100,000 grow to $180,000 at 3%, 4%, or 5%? Now factor in the taxes. This is a very viable option for those who want to leave money to their heirs, and provide potential Long Term Care needs .
I can help you increase your estate with a death benefit that is TAX FREE. It’s the right thing to do.
John K. Bangs