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Copyright 2018, DAK Financial Group, LLC

Liquid Single Premium Life - A Good Idea Times Three

September 28, 2018

The response to the Single Premium Life has been fabulous! The number of people we have been able to help with this coverage is growing daily. If you haven’t given us a call to come in and see what it’s all about, please do so before the year end. And they said September was national life insurance month!

Imagine, if you will, a program that offers market related returns without being in the market. The principle is guaranteed and the gains are locked in, like interest at the bank. There are several index options available for your choosing and the fixed interest rate option is currently 4%.

 

There are several different platforms for you to select from, but you can have the monies available to you at any time. Lastly, the face amount or death benefit can be used for “Living Benefits” like for payment of long-term care costs. This product addresses long-term care expenses that are not covered by health insurance, Medicare supplements or Medicare Advantage. The concept of putting your monies in a product that provides 100% liquidity, tax-free death benefits and tax-free, long-term care is simply brilliant—if you can qualify medically for this insurance.

 

So, what types of assets make sense for this program? Well, for starters, how about Money Market Funds, CDs and Savings Accounts? You know, monies that are being disrespected by the banks at much less than 4%! This type of asset can be confiscated when you go into a nursing home, or drained away if you need it for care not covered by traditional health insurance or Medicare.

 

So, why not use the funds to leverage against the risk of long-term care expense? Instead of putting all of your money in the bank’s pocket, why not put some of it into a policy that works for you, which will ultimately end up in you or your heir’s pocket?

 

Other Benefits

 

Besides the tax deferred monies growing and earning interest on interest, interest on principle and interest that would otherwise be taxed, there are “other benefits” that might not be as immediately evident, but that are fundamentally important for the right purchaser.

 

Many Americans today count on their pension assets or income for paying their living expenses. Unfortunately, when a spouse passes, the Social Security Administration only allows you to keep the larger of the two checks. This can result in a sizable shrinkage in income and can be problematic for the surviving spouse, who needs this reduction like a “hole in the wallet.” It can get even more complicated than that; if you currently have a pension plan, look at what could also be a reduction of spousal survivorship benefits (frequently, the spouse receives only 50% of what the pensioner received).

In some situations, there are NO survival benefits! What can be done to shore up your loved one’s retirement position? The Liquid Single Premium Life can pay a leveraged death benefit that may help to offset that forecasted reduction in Social Security benefit and reduced pension payments.

 

Lastly, this tax-free long-term care benefit and death benefit from single premium life can ultimately be utilized to help pay the tax liability on your IRAs and 401K monies that get passed on to your children. That’s right, the death benefit can help to ease the pain of the tax bite the government takes from your tax qualified accounts when you die; this is referred to as “Income with respect to the decedent,” OUCH!

 

One other noteworthy point worth repeating is that you must qualify medically for this program. Relax, you don’t have to be in perfect health, but you do need to be somewhat insurable. So, do not delay; talk to your financial advisor about a really smart choice with your monies that are languishing at the bank. Do this while you still have the time and good health! Make a difference in your family’s future.

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