Do you have any money that you plan on leaving to your family, but concerned about needing it for emergencies such as long-term care or home health care?
Consider the case of Dan and Joanne.
Dan and Joanne just reached age 65 and had prepared very well for their retirement. Together, their 401k’s and annuities will provide them a good steady stream of income. In addition to an emergency reserve, they have $300,000 in an annuity that they don’t plan on using for income and have earmarked for their children as an inheritance.
Most recently they met with their Agent for their annual review. After doing a full analysis of their plans, he recommended that they purchase a Single Premium Whole Life Plus certificate for a premium of $100,000 each.
Their agent outlined the following benefits:
1. They could almost double the amount of inheritance to their children
2. They could pass on a taxable asset to their children income tax-free
3. If they ever need Home Health Care or Nursing Home Care, they can access up to 90% of their Death Benefit
4. If they have an immediate emergency, they can fully access their $100,000 at the bank and if they need to can take some
monies out of their whole life policies.
Dan and Joanne accept their Agent’s recommendation and purchases two Single Premium Whole Life Plus certificates; Dan’s $100,000 deposit provided him a death benefit of $171,765 and Joanne’s $100,000 provided her a death benefit of $185,815.
Dan and Joanne have a wonderful retirement together for 20 years, and then Dan’s health fails, and Dan requires nursing home care. Because he purchased the Single Premium Whole Life Plus, he can initiate his accelerated death benefit and can access up to 90% of his death benefit or $154,588 over the next 30 months as needed. Dan receives a monthly benefit of $5152 to pay for his nursing care for 15 months and then passes leaving his family $94,485 ($171,765 minus $77,280 of nursing care costs).
Years later when Joanne passes away, she leaves their children income tax free a total of $185,815.
1. Dan and Joanne were able to leave a total of $280,300 income tax-free to their children
2. Dan was able to get a monthly amount of $5152 for Nursing Home Care
3. They were able to take a taxable asset and transfer it into an income tax-free asset to their children
To see how life insurance can solidify your retirement, call your agent for a confidential analysis. Our agents are trained professionals.