$50,000 in a CD or Annuity?

Mary is a healthy 65 year old who is recently retired.  Between her retirement accounts and social security she has enough to live comfortably.  Mary also has $50,000 sitting in a CD that she keeps renewing at modest interest rates.  The earnings are low, but it’s safe.  

Mary doesn’t plan on needing or spending that $50,000.  She considers it “never money” and plans on gifting it someday to her church when she passes.  One day Mary sees a Beck Insurance Facebook / Blog post about leveraging cash with life insurance to maximize charitable giving.  Mary learns that given her age and health, she could instead apply that $50,000 to a Single Premium Preferred Whole Life Insurance policy.

In her case, a single premium of $50,000 would buy her $103,707 in paid up life insurance benefit.  Mary submits an application and is approved at Super Preferred rates, and is approved once underwriting has processed.  Mary also named her church as the primary beneficiary of the policy, so at the time of her death her church would receive a gift of $103,707 tax free.

To learn more about how you can leverage life insurance to maximize your charitable giving please call Beck Insurance Agency at 419-446-2777, email us at help@beckinsurance.com, or click here.