10/25/2022
Single Premium Life Case Study
Jane is a 65-year-old grandmother who is a non-tobacco user. She wants to pass her $50,000 certificate of deposit to her 2 grandchildren at her death. While she wishes she could leave each of them more, the certificate of deposit will only provide $25,000 to each of them.
Our Agent is showing Jane that she can move her $50,000 from the certificate of deposit into a Single Premium Whole Life policy. By doing this, Jane is purchasing approximately a $90,000 death benefit that is guaranteed for the rest of her life. Jane has nearly doubled the number of her assets and can now leave each grandchild around $45,000 instead of only $25,000.
This is almost an 80% increase!
Benefit One:
Increase each grandchild will receive as an inheritance.
Benefit Two:
Jane will no longer be paying any taxes on the interest earned in the certificate of deposit.
Benefit Three:
The death benefit will bypass probate and will potentially pass income-tax-free to her 2 grandchildren.