There’s money you need for today. Money you will need for tomorrow. And money you will never need. It’s called never money because you don’t anticipate using it during your lifetime.
Many people, especially grandparents, have never money sitting in bank CD and savings accounts. The purpose of this money is for their children and grandchildren when they pass on.
In today’s low interest rate environment, the bank CD and savings accounts may not be the ideal place to keep the money. Not only are the interest rates extremely low, but you have to pay taxes on the gains each year. It may not be a big deal if you have less than $50,000 in the CD, however if you have over $100,000, the taxes add up.
There’s a better way to leave a legacy to your children and grandchildren. It’s called a single premium Whole Life policy. Here are the benefits you receive by re-positioning the bank money to the Whole Life. This is an example of healthy 65 yr old, non-smoker female, moving $100,000 to the Whole Life
The $100,000 buys $183,506. Right from day one you have increased the amount of money you will leave to your children or grandchildren. How long would it take you to accumulate that money in a 1% to 2% bank CD?
As long as you don’t take any money while you are living, you do not have to pay any taxes on the earnings.
When you pass on, the death benefit is tax free to your children and grandchildren
In the event you have an emergency and need access to the money, you can get to it without any penalties or surrender charges. Remember, you will have to pay taxes on the gains if you take money out while living.
Some policies will give you access to the money in the event you need to go to a nursing home or assisted living facility
No market risk to the money. It’s not in the market.
This is a way to significantly increase the amount of money you want to leave to your loved ones.
Why wouldn’t you want to put some of your never money into this wealth transfer solution?