Case Study: An asset for tax diversification
Rick is age 55. He and his wife, Tina have two adult children. This couple recently sold their home and moved to a condo in town. They made a nice profit on the sale, and Rick is ready to use part of the money in a tax-efficient way.
Rick’s goals
• Finding an asset that offers tax-advantaged growth
• Creating a legacy for his children without creating tax risk for them
• Establishing his plan for care
Rick’s concerns
• Facing market risk and losing the profit he made on his home sale
• Not knowing what income and capital gains taxes will be in the future
The solution
In conjunction with recommendation from Rick’s tax and estate planning team, Rick purchase a $100,000 Indexed Single Premium Universal Life Insurance policy as a differentiated asset within his portfolio. This will provide the liquidity of a full return of principal, tax advantaged growth, guarantees, an income tax-free legacy for his children, and income tax-free chronic illness benefits if he would ever need care.
At the time of purchase, Rick chooses the Global Multi-Index Bonus HIGH PAR Strategy which can help his death benefit grow tax-deferred over time. He’ll have principal protection and will never face losses due to market performance.
The outcome