For your Clients who have Significant IRA Money and want Tax Advantaged Benefits!
Dear Financial Professional:
As you are assisting your clients with planning for their future needs, I want to make you aware of a unique strategy that offers much needed LTC protection while turning taxable dollars into income tax-free dollars for their heirs!
A 63 year old couple with 1.2 Million in liquid assets; the majority of these assets were in the husband's $900,000 IRA.
$123,000 was transferred into State Life's Asset Care III product (a 20 Pay-Hybrid Whole Life/Long Term Care Policy coupled with an IRA Annuity).
These funds, deposited into the annuity, will be used to provide a paid-up Survivorship life policy (2nd to Die) with a death benefit of $234,000. Each year for the next twenty years, a withdrawal of $8,022 is taken until the 20-pay life policy is paid up. This annual withdrawal is taxable to the owner.
In addition to the $123,000 transfer, the clients decided to pay an annual premium (guaranteed to never increase) of $4,485 to purchase an LTC rider. This rider provides each insured a monthly long term care benefit of $9,380 with NO cap on the length of time that benefits can be received.
Cost of the plan: Lump sum transfer: $123,000
Annual premiums: $4,485
Benefits: Survivorship Death Benefit: $234,500
LTC Benefit: $9,380/mo. each-Unlimited
Proceeds are tax advantaged during the first 20 years and 100% tax free after 20 years!
A death benefit is paid out even if long term care is never needed!
The policy can be cancelled for a full refund of their single premium!
I look forward to hearing from you to discuss this important strategy to help protect your client's assets, while offering them much needed long term care protection!