Give your client an option to access tax-advantaged long-term care funds if they need them or a tax-free death benefit for heirs if they don’t!
Here at Quantum, we have a hybrid whole-life product that may work for your client, depending on their circumstances, which is currently offering a 25% bonus. Here is a hypothetical example.
Bill and Sue, both aged 60
Married couple, non-smokers in good health
Bill and Sue can reposition $200,000 of their qualified funds, using their 25% income base bonus—$250,000—to purchase a whole life policy with a face amount of $221,887. Using the income rider, the annuity disburses $25,000 per year for 10 years to pay the premiums. Bill and Sue receive a 1099 each year for 10 years, and distributions via income rider count towards their RMD calculation once they reach age 73.
Not only does this scenario provide Bill and Sue with a guaranteed $110,944 per person to help pay for qualifying LTC expenses for life, it also provides for a tax-free life insurance benefit for their beneficiary(ies) should they not need extended care. In fact, if they do need LTC dollars, any claim payments for LTC expenses are tax-free from Day One because of the product’s structure.
NOTE: Actual results may vary. All pricing and examples are hypothetical and are used for explanatory purposes only. Guarantees are contractual and are based on the financial strength and claim-paying ability of the issuing life insurance company.
An Upcoming Tax Bomb = SECURE Act + The Great Wealth Transfer
An estimated $84.4 trillion in assets is expected to be passed to heirs from the current generation, much of it taxable as ordinary income. And remember, the SECURE Act means heirs must take distributions and close inherited qualified accounts within 10 years of inheritance, burdening them with RMDs and ordinary income taxes owed on the entire amount.
This hybrid whole life product can help mitigate taxes for all generations and provide long-term care funds if needed.
Call your Quantum Life Insurance Consultant at 800.440.1088 today for a case design for your client.
As a life insurance consultant with more than two decades of experience, Chase works with advisors to build client relationships, develop strategies, and share product knowledge to help deliver a personalized and customizable experience.
