Leaving a Legacy Is Easier Than You Think
Do you have money tucked away in a coffee can or safety deposit box? Do you resist investing it because you don’t want to pay taxes on it? Or perhaps you do have it invested, but safely, in a CD or something that you know will provide a solid – but minimal – return?
If this is money that you would like to leave as an inheritance fund for your children or grandchildren, perhaps it’s time to try something different. Wouldn’t you like to see your hard-earned funds increase substantially?
A One-Payment, Big-Return Investment Strategy
By moving this money into a Single Premium Whole Life Insurance Policy with Pekin Insurance, you can immediately increase the amount of money you are able to leave to your heirs. Let’s take a look at a couple of examples to show you the true impact this policy can have on your estate.
Grow Your Funds by $25,000!
Joe (age 65) has $34,000 in a safety deposit box. He plans to leave this money to his grandson upon his death. If Joe were to use this money to purchase a Single Premium Whole Life Insurance policy, it would immediately be worth $59,385* in life insurance—an immediate gain on the cash of over $25,000! The money is safe and secure, and there are no tax worries either. (*Assumes that Joe qualifies for Preferred rating, which is Nonsmoker rating.)
Fast Forward Your Growth by 50 Years
Brenda (age 65) has $17,000 sitting in a CD. She plans to leave this money to her daughter as a gift. If Brenda were to use this money to purchase a Single Premium Whole Life Insurance policy, it would immediately be worth $29,667* in life insurance — an immediate gain on the deposit of over $12,000! Brenda’s daughter would receive this money tax-free! Compare this to a CD that earns only 1%, which would take over 50 years to reach $29,000. (*Assumes that Brenda qualifies for Preferred rating, which is Nonsmoker rating.)
Tax-Free Inheritance, Tax-Deferred Earnings
One of the best benefits of a Single Premium Whole Life Insurance Policy is that the cash value accumulations you earn on the policy are not taxable (unless they are withdrawn). Plus, the death benefit paid to your beneficiary is completely inheritance tax-free! You also completely control who gets the benefit … your favorite daughter, a special needs child, your church, anyone you choose!
Make Single Premium Whole Life Insurance part of your estate planning today. A good life insurance plan provides families with more than just enough funds to cover funeral costs. It will leave a legacy for generations to come. Additional life insurance options available include various whole life and term life insurance plans, annuities, funeral preplanning, and credit insurance and debt protection. Or if you’re still trying to figure out which plan is best for you, try our life needs calculator or our Frequently Asked Questions.
See what Pekin Insurance can do for you.
Unless funded entirely by proceeds of a 1035 exchange, this policy will be considered a Modified Endowment Contract. This means distributions, which include cash withdrawals, policy loans, and assignments, may be subject to Federal Income Tax. An additional 10% penalty tax may also apply prior to the policyowner’s age 59½. Please consult your tax advisor with questions.