I currently have an annuity which I no longer feel is a good investment for me due to the high expenses and I haven't had it long enough to annuitize for much ($3,000/year). I have reached the point where there is no penalty to withdraw - only withdrawl fees. My fin. advisor has suggested putting the money into a whole life policy. My main goal for this money is to be left to my two adult sons. I'm unsure if this is the best plan - he says it would ensure a specific amount be left to them whereas a Roth IRA (I am still working part time) would of course be subject to ups and downs of the market. I do not anticipate needing this money during my lifetime. I currently have social security which I started drawing at 70, retirement from my job, a LTC/life insurance policy, money market, Roth IRA and IRA. At this time, money from SS, retirement, and part time work is more than enough for my living expenses. I have done extensive research on whole-life as an investment piece, but that has produced just more confusion. Any input appreciated.
Does 70 Yr Old Female Need Whole Life
- Thread starter DeeRae
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How is your health Dee?
Is your adviser recommending a Single Premium Whole Life policy?
Is your adviser recommending a Single Premium Whole Life policy?
- 4,132
"a LTC/life insurance policy"
What type is this and who did you purchase it from?
And you're sure it's LTC and not accelerated benefit?
What type is this and who did you purchase it from?
And you're sure it's LTC and not accelerated benefit?
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Is the pacific life policy guaranteed to stay in force? and if so, how long?
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I'm sorry, what I meant was how long is the policy guaranteed to stay in force?
It might say something like to age 90, to age 100, to age 110, or to age 120.
When the agent showed you the illustration, do you recall how long it ran?
It might say something like to age 90, to age 100, to age 110, or to age 120.
When the agent showed you the illustration, do you recall how long it ran?
I'm going to guess that her advisor purchased her Premier Care from Paclife. It is a product like Moneyguard or TLC and is normally guaranteed for life (to age 120) and has an ROP component if she ever needs to surrender.
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We do a lot of this type of planning and it can be very advantageous for the right situation (which you might be in).
I am assuming that you don't have any tax ramifications from surrendering the annuity (since you can't directly exchange an annuity for a life insurance policy).
Whether WL or another product makes sense will likely come down to you. A general rule of thumb is: the more accessability you have to the initial deposit, the less leverage (death benefit) you'll have.
For instance, you could purchase another annuity with a guaranteed death benefit and have the ability to surrender your policy at any time to get most (initial deposit minus rider fees) of your money back if you needed it.
The other side of the spectrum would be something like a single pay GUL or annuitizing your annuity and using it to fund the life policy. Both of these options would give you little recourse if you changed your mind but would likely maximize the benefit to your sons.
The whole life solution is probably somewhere in between.
Without knowing the actual numbers, it will be hard to give a definitive answer to your question but in short: yes, this type of strategy sometimes makes sense. It really depends on the client.
I would look at the Sagicor Life SPWL which has a Fixed Index or Interest Sensitive account for accumulation.
The Product is Consumer Friendly, so Some agents don't sell it because it has lower commissions. It has a guaranteed return of principle from Day one, Simple underwriting, No Exams, etc. and offers a good life insurance to Deposit ratio for a 70 year old Male Non-Smoker. It also has a built in Chronic Care/Critical Care Rider for use in LTC situations, (depending on what State you reside in).
If you are working with a financial advisor, ask to look at this product. I have attached a brochure for you to look at.
The Product is Consumer Friendly, so Some agents don't sell it because it has lower commissions. It has a guaranteed return of principle from Day one, Simple underwriting, No Exams, etc. and offers a good life insurance to Deposit ratio for a 70 year old Male Non-Smoker. It also has a built in Chronic Care/Critical Care Rider for use in LTC situations, (depending on what State you reside in).
If you are working with a financial advisor, ask to look at this product. I have attached a brochure for you to look at.
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