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Wealth Transfer -
SPWL |
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Why Single Pay Whole Life?
There are a number of different opportunities you can consider to accumulate funds for retirement, education or to build for future security based on what is important to you. Some plans will offer more safety than others. Some will offer a potential higher return. But none will offer the tax efficiencies to transfer wealth to the next generation better than Single Payment Whole Life.
Single Payment Whole Life insurance offers the advantages of an annuity – plus additional advantages an annuity doesn’t offer. It is a plan where one can maximize what is left to loved ones without passing on any additional tax burden. By using a portion of one’s assets to purchase a Single Payment Whole Life plan, you can immediately create income tax-free dollars for your beneficiaries. Talk to us or your representative today about how you can take advantage of the benefits of Single Payment Life Insurance during your lifetime – and beyond.
Key Points
- Immediately increases estate value to heirs.
- Accumulates interest tax-deferred at an attractive rate.
- Easy access to cash in your lifetime.
- Guaranteed return of principal. (not available in New York)
- Death benefit is delivered to heirs income tax-free.
- Death benefit avoids the expense and delay of probate.
How It Works
You purchase the policy with a single payment. The initial death benefit will be determined by age and sex. Once established it will never be reduced unless loans or withdrawals have been made. The single payment will also earn interest. The initial interest rate is guaranteed for the first year. In each subsequent year a new rate will be declared. Interest will be credited to the policy and it will accumulate income tax-deferred. Funds left to accumulate in the contract will continue to grow, and are likely to increase the death benefit for heirs. And since the legacy is passed to the loved ones as a death benefit, it is income tax-free and will avoid the costs and delays of probate.
Policy Specifics
Initial Death Benefits Per Dollar of Payment Chart
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In New York, the death benefit would be $86,260 |
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Assumes 5.5% annual crediting rate on the annuity |
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The death benefit shown for Single Payment Whole Life is guaranteed, assuming no loans or withdrawals. The actual benefit payable may be higher. |
Features will vary by company and product. Please refer to
Glossary for definitions
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