New and professional insurance agents alike, often overlook selling single premium life. Some agents do not know who the top insurance companies offering the plans are. Other agents are unfamiliar with the advantages the coverage can provide the client. This will briefly explain the needed information on both
This is a great option for a client that has a lump sum of cash not needed right now, and desiring guaranteed life insurance protection. For provide the family or charity with a later payment, single-premium life insurance may be the ideal product for you. The minimum investment payment is usually $5,000.
Single Premium Life Insurance protects the financial security of individuals interested in preserving and transferring their wealth without passing along estate taxes. Single premium life insurance requires a one time, lump sum of money paid into the policy in return for a death benefit guaranteed to remain paid-up until the policy owner dies. With single-premium life insurance, the cash invested builds up quickly because the policy is fully funded.
The size of the death benefit depends on the amount invested and the age and health of the insured. At age 55, a $25,000 single payment on a female could carry a $60,000 death benefit. In turn a 50-year-old male may make a $25,000 single payment and have a $100,000 death benefit. Some SPL policies give tax-free access to the death benefit to pay for long-term care expenses. This super feature can help protect other assets from the overwhelming cost of long-term care. The death benefits remain in the policy, and when the policy owner dies, they pass income tax free to the beneficiaries.
Investment Options There are two popular single-premium policies that offer different investment options. First, there is single premium whole life, which pays a fixed interest rate. This rate is based on the investment experience and current economic conditions affecting the insurance company. The other option is single premium variable life that allows policy owners to select from a wide number of professionally managed money market, stock, and bond or set up a fixed account.
The advantages of single premium life insurance include earnings that accumulate tax deferred, a beneficiary receives an immediate, tax-free death benefit, and policy owners are able to retain access to their money to meet unseen circumstances.
The disadvantages of singe-premium life are that is not a deposit that it is not FDIC insured by a Federal Government Agency. It is also not guaranteed by any bank provisions and could possibly lose value.
The Top Insurance Companies Actively Promoting SINGLE PREMIUM LIFE
1. Americo Financial Life and Annuity Insurance Company, all states but Al, AK, MS, NJ, NY, PA, WA
2. AmerUs Life Insurance Group, national
3. Assurity Life Insurance Company, national
4. Aviva Life $ Annuity Company, all states but MA. MT, PA, VT
5. Baltimore Life Insurance Company, all states but KY, MA, MT, NY
6. Catholic Family Life, these 20 states: AZ, CA, CT, IL, IN, IA, ME, MD, MI, MN, MN, MO, NE, NH, PA, RI, SD, VT, VA. WI
7. CSA Fraternal Life, these 17 states: CA,CO,FL, IA, IL, IN, KS, MD, MI, MO, NE, NJ, OH, PA, TX, WI
8. EMG National Life Company, no NJ or NY
9. Equitable Life & Casualty, all states but AK, CA, CT, DE, FL, GA, HI, MD, MA, MN, NJ, NY, PA, RI, VT, WA, WI
10. Illinois Mutual, all states but not AK, HI, NJ, NY
11. Lincoln National Life Insurance Company, national
12. Motorists Life Insurance Company, available in FL, GA, IL, IN, KY, MI, OH, PA, SC, TN, VA, WV, WI
13. Mutual of Omaha, all states but MD, MA, NJ, PA, VT
14. New York Life Insurance Company, national
15. National Guardian Life Insurance Company, all states but ME, NY, VT
16. Nationwide Financial, all states but CA, CT, HI, MA. MS, MT, NV, NJ, NC, PA, TX, UT, WA
17. Royal Neighbors, All states but AL, AK, HI, MA, NH, SC, VT
18. SBLI USA Mutual Life Insurance Company, most states
19. Standard Life and Accident Insurance Company, all states except AL, AK, ME, MT, NH, NJ, NY, SD
20. William Penn Association, all states except CA, CT, Fl, Il, IN, KY, MD, MA, MI, MO, NE, NJ, NY, OH, PA, VA, WV, WI