An accelerated death benefit is an insurance rider that lets the policyholder access the death benefit of their whole life insurance policy while they’re still living, should they be diagnosed with a terminal or critical illness.
To qualify for an accelerated death benefit, a policyholder typically need to provide certification from a doctor that they have a shortened life expectancy. In most cases, it can be included with a policy at no extra cost. For help adding an accelerated death benefit to your policy, contact your Wealth Strategist.
While it’s not technically considered rolling over, funds from an IRA can be used to pay whole life insurance premiums. Using IRS rule 72(t), money can be moved between these two accounts without being penalized for early withdrawal, but the owner will have to pay taxes on the amount withdrawn from the IRA.
There are several benefits to transferring IRA funds to a Wealth Maximization Account. Speak with a Wealth Strategist if you’re interested in learning more.
Yes, typically term life insurance can be transferred into a whole life insurance policy. Schedule a free consultation with a Wealth Strategist to learn more.
A modified endowment contract is a life insurance policy with cumulative premiums that place the value of the policy above federal tax law limits.Any withdrawals from a modified endowment contract, other than the death benefit to a beneficiary, are subject to a 10% withdrawal penalty before age 59 ½. Modified endowment contracts are useful tools for passing on legacy to beneficiaries but not for living benefits.
Wealth Maximization Accounts are whole life insurance products specifically formulated to avoid becoming modified endowment contracts. For more information, speak with a Wealth Strategist.
A guaranteed insurability rider gives the policyholder the option to purchase additional insurance coverage on a specified policy without having to go through the hassle of getting additional medical exams, for a specified period.
A paid-up additions rider is a tool used to increase the cash value of a whole life insurance policy as part of a Wealth Maximization Account. It helps an account grow cash value much faster than a traditionally structured whole life insurance policy.
A paid-up additions rider usually cannot be added to a current policy; they are typically structured in to a whole life insurance policy at the time of purchase. Speak with a Wealth Strategist to learn more.
