How To Keep Retirement or Insurance Premiums 100% Liquid

For help in California, Ohio, and Florida only; contact :
Randy Taylor
Serving clients and brokers since 1983
randytaylorfinancial.1@gmail.com
www.facebook.com/RandyTaylorFinancial

 Problem #1:  What if you have limited funds set aside for emergencies; but need to purchase
Life insurance, Long term care insurance, or a Tax deferred annuity savings account?

Problem #2 :  You also want your deposit to be safe , with any growth on the funds to tax deferred while alive, free from income taxes at death, and free from probate expenses.

The Solutions : Some insurance companies offer the following savings  and/or insurance accounts
that allow a lifetime refund option available at any time or, during a set period...:

Single Premium Life insurance: A few highly rated companies offer life insurance that has a contractual
benefit that says you can ask for and receive your deposit back at any time in the future ! It's basically a lifetime refund for any reason at any time. A few others give you the right to ask for a refund any time in the first 10 years.  This mean you can be insured  and then have an emergency, need the cash and borrow part as a loan; or just cash in the entire plan.

Long Term Care Insurance Combined with Life Insurance: This plan is wonderful in that a client can be insured for both long term care needs and life insurance at the same time. If he dies the entire death benefit goes to his beneficiary, income tax free, and probate expense free..If he lives and needs short term cash; he can take a loan and pay it back or not. If he is confined to a nursing home a 50 yr old for example; in good health with $50,000 might have enough to cover 2-3 years stay at a nursing home and maybe 3 times the deposit in paid up life insurance, $150,000 estimate only, if he keeps the plan.

Tax deferred  Fixed Annuities:  These are harder to find but typically look like a bank c.d. deposit that has key advantages over a bank c.d. The annuities in this category on the downside are typically offered only in plans with  a  5 year rate guarantee term that can be cancelled or renewed at the end of the 5 year term.
The upside: The rates locked in for 5 years are higher than an equivalent bank c.d. and unlike a  c.d., the
interest does not have to be claimed as income annually. At death the money goes to the named heir without
the expense of a trust,will, or probate.. At the time of this blog there may or may not be any of these plans
that offer the full refund available. The fee for the refund guarantee is usually about 1/2 of 1%.

Note: These programs usually involve the use of a single purchase premium...The insurance company has
to return the premium but keeps the interest in exchange for any insurance benefit etc. that was available 
prior to the full contract surrender. There are ways to take portions of the deposit without penalty via loans.

 Information given is not meant to be tax or investment advice. Contact you attorney or financial consultant before making any purchases of financial or insurance products.


For help in California, Ohio, and Florida only; contact :
Randy Taylor
Serving clients and brokers since 1983
randytaylorfinancial.1@gmail.com
www.facebook.com/RandyTaylorFinancial

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