Archive for the ‘Life Insurance’ Category

IRS Benefit Allows TAX-FREE Cash For Long Term Care…



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$375

Billion



Informal, unpaid caregivers contributed $375 billion in assistance to adults 50+ in 2011. 2

43.5 million caregivers in the U.S. 18 years of age and over contribute to this figure. 2


$750,000


Projected average cost for 3 years of Long-Term Care 30 years from now.3


Do you have a life insurance policy w/o this LTC or Chronic Illness Benefit?

Why?

We can help.

Call or email today.


Lock Up $3 million TAX-FREE For Just 1.3% and NO PREMIUMS Over 10 Years…

Lock Up $3 million TAX-FREE For Just 1.3% and
NO PREMIUMS “GUARANTEED” for 24 Years…
This is a case I am working on for a couple of healthy 46 year old husband and 43 year old spouse who hate the idea of paying annual life insurance premiums.
Their goal is to create a legacy tax free for their children but they are not ready to make a big commitment financially at this young age but know its cheapest to start right now.
Here’s is what I suggested after uncovering a hidden pricing advantage in one insurance companies pricing software:
This is so simple….
1.    Pay a $40,000 premium year 1 only into a life insurance policy* with a $3 million tax free death benefit.
2.    Pay NO premiums “GUARANTEED” for the next 24 years. “Yes, guaranteed”.
3.    What do you do for 24 years of NO premium payments…Let life just sail by and just watch what ultimately happens to your finances, the economy, your children, your health etc. till you are 70 and 67 in this case.
4.    You tied up the life company when you are in perfect health with NO commitment that you would ever pay the future premiums beginning in year 25…also “GUARANTEED”.
5.    Premiums start in year 25 and they are just 1.9% of the death benefit!
Here’s a few things to think about:
1.    Where can you tie up a potential $3 million tax free asset for 1.3% for 24 years?
2.    Maybe at your age 70 and 67 you gift the policy to your children and they pay the premiums since they will collect the death benefit.
3.    What if your health changed for the worse. That $3 million starts to look like a valuable asset because your life expectancy just shortened.
4.    What if you and your siblings used this same idea and bought a policy on your parents or grandparents.
5.    Ever notice when you have money everyone else wants to invest it for you? Why not invest in your own family? That’s how “old money” gets old.. they keep perpetuating it in the same family.
Now that’s a legacy worth starting.

The big question is…

Do you have Investment Grade Life Insurance?
CLICK THE BUTTON BELOW
David D'Arcangelo
Sincerely,
David D’Arcangelo

Race Car Driver Danica Patrick’s Quick Take…

Watch Danica Patrick talk about being prepared for the inevitable. Are you prepared?

Click to watch a few minutes…Danica talks life and death!

One Tax Free Wealth Strategy Every Should Own

Background: Every family wants to help the next generation. Some will even go so far as to help financially and some cannot or will not. The bottom line, it does not matter as you can create tax-free wealth and transfer it to you and your siblings either way.

Let’s look at what a normal family with mom, who is 73, and 3 siblings are contemplating:

Mary Smith Age 73

Tax-Free Wealth Creation & Transfer Legacy Plan

Background Facts: up to 80% of the wealthiest families transfer assets tax-free from one generation to the next via properly owned and structured life insurance policies.

Taxable Versus Tax-Free: If the policy is owned outside of Mary’s estate and premiums are paid  by the Smith children who are also the beneficiaries the proceeds from the policy at completion are tax-free.

For example: In the 40% tax bracket you would need the following taxable returns every single year to equal the life insurance tax-free return:

Life Insurance Tax Free Return________________Taxable Equivalent Return Needed

5.00%_________________________________________ 8.33%

6.00%_________________________________________10.00%

7.00%_________________________________________11.66%

8.00%_________________________________________13.33%

Life insurance tax benefits and returns act as a alternative to the stock market volatility we have witnessed in the last 15 years. That includes the 2001-2003 Internet crash and the 2008 worldwide crash.

Possible Gifts From Mary Smith: If Mary decides to help offset premium costs she could gift up to $14,000 per year per person, (spouses could be included) tax free using the annual gift exclusion. The siblings would then turn around and pay premiums.

Health Rating and Premiums: Health rating determine premium pricing and are not guaranteed until the policy is issued and paid for. You buy life insurance with your good health. When your health changes you may not be able to buy a policy at any price.

I have run pricing based on a standard health rating for discussion purposes:

_____Benefit                    Premium               IRR at age 87       _ Pre-Tax Equivalent*

  1. $500,000                    $18,157                       7.28%                          12.13%
  2. $750,000                    $27,235                       7.28%                          12.13%
  3. $1 million                    $36,314                       7.28%                          12.13%
  4. $1.5 million                 $54,471                       7.28%                          12.13%

Recommendation:

  1. Pick a number you/siblings feel is comfortable and not a burden and buy it.

* pre-tax equivalent return you would need to receive in a taxable account for 15 years in a row to equal the tax-free internal rate of return (IRR) with life insurance at completion age 87. Completion could be earlier or later. For discussion purposes only.