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Reply to Take Money from 401k to Single Pay Life Insurance     
Old 11-11-2015, 09:03 AM   #1
Super Genius
 
Join Date: Nov 2010
Posts:233
State: shooter is an Insurance Agent from Alabama
Take Money from 401k to Single Pay Life Insurance Take Money from 401k to Single Pay Life Insurance
Good morning everyone.
I enjoy the banter on this board and the good advice.
I have reached the ripe ole age of 59 and 1/2.
Having some money in a 401k I have thought about making
a withdrawal and single paying a SPWL or GUL.

Yes there will be taxes, but would my commission and
saved term premium I'm paying off set that over time?

I have looked at my Compulife and Midland National shows
up as the least expensive.
Not a favorite of mine.

Just throw some thoughts at me and I look forward to
your idea's and opinions.
Shooter
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  Reply With Quote to Take Money from 401k to Single Pay Life Insurance
Old 11-11-2015, 09:18 AM   #2
Super Genius
 
Join Date: Oct 2009
Posts:223
State: pdoyle is an Insurance Agent from Alabama
Take Money from 401k to Single Pay Life Insurance Re: Take Money from 401k to Single Pay Life Insurance
One America will allow you to move qualified money over to a SPWL policy. It's for leveraging LTC benefits.

------------------------------------
P Doyle
Crisis Management / CPS Gulf States Brokerage
  Reply With Quote to Take Money from 401k to Single Pay Life Insurance
Old 11-11-2015, 11:31 AM   #3
Guru
Larry Tew on Take Money from 401k to Single Pay Life Insurance
 
Join Date: Jul 2010
Posts:2,448
State: Larry Tew is an Insurance Agent from North Carolina
Larry Tew is a member of 1000 posts VIP club
Take Money from 401k to Single Pay Life Insurance Re: Take Money from 401k to Single Pay Life Insurance
On the face of it, I wouldn't want a single premium because of it being a Modified Endowment Contract. A large single withdrawal may subject some of the withdrawal to being taxed in a higher bracket.

As a starting point, I would look at periodic withdrawals into a multiple-premium policy (10-pay for example) or whatever it takes to be a non-MEC. You never know 15 or 20 years from now (assuming you live that long) how handy a non-MEC income stream from the policy might be.

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larrytew.com
  Reply With Quote to Take Money from 401k to Single Pay Life Insurance
Reply to Take Money from 401k to Single Pay Life Insurance 

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