“Upscale Planning: Leveraging Social Security benefits with life insurance,” by Russell E. Towers, Advisor Magazine

“Your clients can simply place their unneeded after-tax Social Security into low yielding money market accounts, bank CDs, bond mutual funds, or U.S. government securities. And the low historical yields on these fixed assets are taxable as well. Or they can allocate their after-tax Social Security benefits into an annual premium for a no-lapse UL or SUL policy where the death benefit for their heirs is income tax free and the Internal Rate of Return (IRR) at life expectancy is substantially greater than current fixed financial asset yields. A Long Term Care rider on the life insurance policy can offer additional protection from future extended care costs.”

LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform):
With boomers turning 70 at a rate of nearly 7,000 per day, they’ll soon need to do something with the proceeds from their Required Minimum Distributions (RMDs).  Why not life insurance with a long-term care rider?  Or for that matter, just redirect any unneeded mandatory income toward premiums for a traditional LTCI policy.

Upscale Planning: Leveraging Social Security benefits with life insurance

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