Thought for the day:

“The hardest thing in the world to understand is the income tax.”
Albert Einstein

If you will read no further:

If your client has life insurance we can help you improve it by adding a long-term care benefit.  Now your client can expect income when needed most when he/she needs long-term care or pay a lump sum to the heirs when he/she dies….all for what they currently pay for life insurance.

We provide an LTCi backup for financial professionals that is second-to-none.  Our commissions are excellent and we have a complete product line from the major carriers in the business.  No B/D has more in-house experience (average over 10 years selling LTCi) and the overall understanding (like we have with linked-benefit) of the LTCi market than the folks at Westland Financial.

Thought for the week:

Fifteen years ago, I deposited a lump sum of money into an insurance policy on the life of my 75 yr old mother.  I own the policy (and the cash value), and am the beneficiary; and she, of course, is the insured.  Over the years the money in the cash value has earned a very respectable rate of interest and I have never paid a penny of taxes.  She is now 90 years old and in poor health but still living independently.  We take comfort in the fact that the life insurance policy will pay its benefits for long-term care if needed, so her quality of life is assured at the best possible level.  I recently calculated the anticipated rate of return on my “investment” in this policy should my mother die in the next couple of years.

• With absolutely no uncertainty or concern about that money in my portfolio all these years, it has remained on my balance sheet and been available at any time should I need it.
• Should Mom need to pay more for LTCi than her own estate can accommodate, I know that I will have ready-cash to continue to assure her of the best possible care.
• To the extent that she never needs to spend much on care, I will end up with a healthy tax-free return on my original deposit that has provided so much security for the past 15 years.

WHO SAYS LIFE INSURANCE (THE RIGHT KIND) IS NOT AN INVESTMENT?

Suppose your client, a 71-year-old widow, has an RMD from her IRA of $14,000; and suppose she doesn’t need the $11,000 that is left over after she pays her taxes.  If she is in good health the $11k could buy her a $440,000 life insurance policy that would pay her $8,800 per month for 50 months if she needed long-term care someday and any not needed for that would become a tax free legacy to her heirs.  If she lives as long as my Mom, the tax-free annual rate of return on her “investment” is 7%…GUARANTEED.