In our last blog post, we discussed the situation Sally faces and the problems she wants to solve. Now, here is the solution that solves all her problems at the same time!
Step 1.
Use her IRA money to purchase a Fixed Income Annuity with Guaranteed Benefits Rider that pays her 5% lifetime - it will be $12,500 per year. Assume her income tax rate at 20%, that will be $10,000 after tax.
The Benefits:
No money needs to come out from her pension and social security income to support this mission, she can keep living her planned life style.
Step 2.
Use the $10,000 per year to purchase a permanent life insurance with a 2% monthly long term care benefits rider. Given her health situation, the $10,000 annual premium can get her $400,000 death benefit, the 2% LTC benefit (if she ever needs it) will be $8,000 per month.
The Benefits
1. Sally's $250,000 IRA is guaranteed to generate $400,000 benefits, no more worry about losing money if the stock market crashes!
2. If she ever needs nursing care, there is $96,000 a year benefit waiting for her!
Caution
Different people's situations are different, your age, health situation, etc. may lead to different coverage amount. Also, the product market is very competitive and always evolves. Please contact us to design a case that makes sense for you.
Step 1.
Use her IRA money to purchase a Fixed Income Annuity with Guaranteed Benefits Rider that pays her 5% lifetime - it will be $12,500 per year. Assume her income tax rate at 20%, that will be $10,000 after tax.
The Benefits:
No money needs to come out from her pension and social security income to support this mission, she can keep living her planned life style.
Step 2.
Use the $10,000 per year to purchase a permanent life insurance with a 2% monthly long term care benefits rider. Given her health situation, the $10,000 annual premium can get her $400,000 death benefit, the 2% LTC benefit (if she ever needs it) will be $8,000 per month.
The Benefits
1. Sally's $250,000 IRA is guaranteed to generate $400,000 benefits, no more worry about losing money if the stock market crashes!
2. If she ever needs nursing care, there is $96,000 a year benefit waiting for her!
Caution
Different people's situations are different, your age, health situation, etc. may lead to different coverage amount. Also, the product market is very competitive and always evolves. Please contact us to design a case that makes sense for you.
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