Single Pay with income

GreenSky

Guru
5000 Post Club
15,319
Henderson, NV
Is it possible to set up a single pay life (MEC is fine) that will allow for an annual loan or withdrawl while keeping at least part of the death benefit forever?

Taxation of the withdrawal and death benefit in this instance is not an issue.

Rick
 
I doubt there are any gaurantees on DB when someone is taking withdrawals.
Have you thought about mixing a Single Premium Immediate Annuity and a Single Premium Life?
 
Let me tell you what I'm trying to accomplish.

Yesterday at the Libertarian convention, it was announced that someone left the party a bunch of money in their will. I came up with the thought that perhaps some people would buy a life policy and name the party as beneficiary.

However, I'm sure the party would prefer money up front rather than waiting many years to collect.

My idea if it would work is for an individual to purchase a single pay UL or WL, have enough cash inside to give a living benefit to the party with money left over for a death benefit.

A non single pay won't work because the party certainly would rather have the premium dollars as a donation.

So, can any life experts give me some advice?

Rick
 
In general. :biggrin:

I am trying to understand why you want to give them steady income and a death benefit? :skeptical: Wouldn't one or the other work? I know who should call. Brokers Alliance. :yes:
The reason I'm trying to give them both is because if you offered the party $50,000 now or $250,000 upon death, they will take the $50K now.

I need to show continual income PLUS a death benefit to make it worth deferring part of the $50K gift.

Rick
 
You're really looking at 2 different policies, which I know is not different than what you already know. Best choice is to set up a term/perm policy and if they have the cash flow annual direct donations for the deduction. I believe in CA there is a premium tax on a SPIA, which just serves to reduce the principal (and would someone tell me WHY there's a premium tax? Wassup wit dat?) Then of course, there's always zero premium life, but those policies best work if the owner pays the premiums the first couple of years. Sorry in advance if this doesn't help...
 
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