Single Premium Life Insurance

Do you have money set aside that you may not need to "get along", and would like to "pass along"?

If so, you may want take advantage of the power of Single Premium Life Insurance. In consideration for the deposit of a single premium (minimum $5,000) many of these plans provide the following benefits:

Kelley Phillips, President Life Solutions, P.A.

Single Premium Life...an efficient way to pass assets to the next generation.

  • Life-long coverage with no further premiums due.
  • An immediate increase in the value of your estate.
  • An income-tax-free benefit to beneficiaries.
  • Funds for chronic illness expenses ( a percentage of the death benefit can be provided monthly). This is a good alternative to conventional long term care policies as, unlike a LTC policy, unused benefits go to your heirs as a tax free benefit.
  • Tax deferred growth of the cash value.
  • Limited medical underwriting.
  • Return of your premium at any time with no penalties if you wish to terminate the plan.

Here's an example of how this type of plan works.* We have a client that had a nest egg of $125,000 (non-qualified money) that she wanted to leave to her children at her death. However, she was concerned that she might need the funds for her own care in her later years as she did not qualify for long term care insurance due to health concerns. At age 72 she used her $125,000 to fund a Single Premium Life Insurance plan that will provide a death benefit of $225,000. If needed, she could draw over $6,000 a month for chronic illness care (long term care) expenses against the death benefit. The balance, after her care expenses, would go to her beneficiaries as a tax free benefit. The cash value in the policy will grow tax deferred and can provide cash for emergencies if the need should arise.

*This case is shown as an example only. Age and health considerations determine the amount of coverage available for a given premium and also determine eligibility. Not offered without full disclosure of all plan details and limitations.