(NAPSI)-If you’re looking for a way to immediately increase the size of your estate, grow your money tax-deferred, pass wealth to your heirs tax-free, and have funds available in case of a health emergency, then single premium life insurance might be worth looking into.
Single premium life (SPL) is life insurance in which an initial lump-sum payment is paid into the policy in return for a death benefit that is guaranteed to remain paid-up until your death, unless you have unpaid policy loans.
While the tax-free death benefits provided by SPL plans compete very favorably with certificates of deposit and fixed and equity annuities, life insurance is the only financial vehicle that provides tax-deferred growth and tax-free disbursement at death.
Maximize Your Legacy
Of course, the more you initially pay in premium to your policy, the greater your death benefit will be . . . and the greater your estate will be when passed on to your heirs.
With SPL, a lump-sum premium payment will typically immediately secure a significant amount in coverage. Plus, an SPL policy can increase significantly over time and provide tax-deferred benefits.
While the death benefit provides an efficient means for you to provide for your dependents, you also need to consider unexpected expenses that often crop up as you grow older. Some SPL plans offer an accelerated death benefit for terminal and chronic illnesses, and a “liquidity rider” so you can withdraw funs at no charge if needed for certain circumstances.
Many plans will provide 50 percent of the death benefit when your life expectancy is less than 12 months. The remaining death benefit will be payable to your beneficiaries upon your death. In case of a chronic illness, up to 80 percent of the face amount of the policy is available to you as a lump-sum payment.
Ideal for You?
If you have a lump sum of cash and you want guaranteed life insurance protection for your family, as well as tax-free growth and a source for funds in case of an emergency, then an SPL policy may be the ideal product for you, as single premium life insurance can immediately boost the size of your estate.