I’m speaking of Federal Income Tax. Let me ask you a question. Given your choice on money you have saved or invested, what would be your favorite tax paying scenario? Pay taxes now, pay later, or don’t pay at all? I know the answer is obvious. I’m sure you would rather forgo the payment of Federal Income Tax. I feel the same way and I am sure that your clients do as well. So, why don’t we help them out? Why don’t we give them what they want? You know we can help. 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. You have clients with “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 agents had a 65 year old female 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.
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 market is exploding!
We have the sales and marketing pieces to assist you. Help your clients by increasing their estates with a death benefit that is TAX FREE. It’s the right thing to do.
Until Next Time … Good Selling!
Ray Ohlson
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. You have clients with “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 agents had a 65 year old female 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.
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 market is exploding!
We have the sales and marketing pieces to assist you. Help your clients by increasing their estates with a death benefit that is TAX FREE. It’s the right thing to do.
Until Next Time … Good Selling!
Ray Ohlson
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