Would you like to be able to take a lump sum of money, and then turn it into a larger sum of money so you could pass it on to the next generation? If you have spoken to a financial advisor or insurance agent, they may have mentioned SPLI (Single Premium Life). This product can work well for some people.
The most obvious difference is that you make one large cash payment when your coverage begins. You are probably used to having a monthly bill! That one lump sum funds your coverage, and so you do not have any more payments to make.
That money, paid at the start, will guarantee coverage for your whole life. What you have done, really, is to turn a sum of cash into a much larger amount of coverage on you. This is how you can take one amount of money, and turn it into a larger estate to pass on to your beneficiaries.
Let us say that a retired school teacher is comfortable with her pension and savings. In this example, she just inherited $22,000 from an uncle, and is certain that she will not need to use this money to enjoy her life. She may be able to take this amount of money and buy a $100,000 SPLI policy so she can have a very nice estate to pass on to her son.
Now understand that the price you would pay for a particular policy will depend upon many different things like your age, health, the insurance company, etc.
Who should consider single premium life (SPL)? It is something to consider if you have a lump sum of cash that you would like to leave to your heirs. Your children, grandchildren, or a favorite charity could be the beneficiaries.
Be sure you will not have to use the money for a few years. In the first few years, policies can impose fees and surrender charges. So it is probably not the right life insurance if you are not sure if you will need the money to live on.
Another advantage to the owner is a SPL policy's ability to grow a cash value quickly. If you can leave the money alone for the few years you will need to get past surrender charges, you can have a nice place to borrow money from. You can also cash the policy in. The cash value should grow quickly since the insurance is already funded by the initial payment!
Accelerated death benefits and nursing home confinement provisions are another feature. In some cases, the insured person can actually use part of the face value while they alive!
But SPLI is not good for everybody. There are some disadvantages to consider. You do need the money to fmake that first, and only, payment. If you do have to surrender early, you risk losing money for fees. The IRS treats these a little differently than regular life policies too. You may not enjoy all of the tax benefits.
Are you interested? Look here to get Single Premium Whole Life Explained.
Visit My Online Quotes to save time and money:The most obvious difference is that you make one large cash payment when your coverage begins. You are probably used to having a monthly bill! That one lump sum funds your coverage, and so you do not have any more payments to make.
That money, paid at the start, will guarantee coverage for your whole life. What you have done, really, is to turn a sum of cash into a much larger amount of coverage on you. This is how you can take one amount of money, and turn it into a larger estate to pass on to your beneficiaries.
Let us say that a retired school teacher is comfortable with her pension and savings. In this example, she just inherited $22,000 from an uncle, and is certain that she will not need to use this money to enjoy her life. She may be able to take this amount of money and buy a $100,000 SPLI policy so she can have a very nice estate to pass on to her son.
Now understand that the price you would pay for a particular policy will depend upon many different things like your age, health, the insurance company, etc.
Who should consider single premium life (SPL)? It is something to consider if you have a lump sum of cash that you would like to leave to your heirs. Your children, grandchildren, or a favorite charity could be the beneficiaries.
Be sure you will not have to use the money for a few years. In the first few years, policies can impose fees and surrender charges. So it is probably not the right life insurance if you are not sure if you will need the money to live on.
Another advantage to the owner is a SPL policy's ability to grow a cash value quickly. If you can leave the money alone for the few years you will need to get past surrender charges, you can have a nice place to borrow money from. You can also cash the policy in. The cash value should grow quickly since the insurance is already funded by the initial payment!
Accelerated death benefits and nursing home confinement provisions are another feature. In some cases, the insured person can actually use part of the face value while they alive!
But SPLI is not good for everybody. There are some disadvantages to consider. You do need the money to fmake that first, and only, payment. If you do have to surrender early, you risk losing money for fees. The IRS treats these a little differently than regular life policies too. You may not enjoy all of the tax benefits.
Are you interested? Look here to get Single Premium Whole Life Explained.
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