Quote:
Originally Posted by fintstone
Some make a good case that a large policy is a clean way to transfer one's wealth to others on passing.
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If you can write a check with six zeroes on it, a large single premium policy (some even earn dividends) is a fantastic way to get money out of your estate. An insurance company will only pay out to a named beneficiary, no one else. There's no squabbling about it, creditors can't touch it, and it's generally not taxable. But those aren't my people. I sold a $5k policy to a guy once who wanted five beneficiaries. Sheesh. Wasn't worth my time or paperwork. And I love the ones who say, "Nah, I'll just put money in a savings account and that will cover it." Really? You're 65 yrs old, in terrible health, dirt poor on a fixed income, meaning you'll always be dirt poor, and you're just now gonna save up $25k. Ok. That's why you're poor.