Take Money from 401k to Single Pay Life Insurance

[shooter]

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

 

[pdoyle]

One America will allow you to move qualified money over to a SPWL policy. It's for leveraging LTC benefits.

 

[Larry Tew]

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.