Depending on your situation the simple answer is… quite possibly.  In fact, single-premium universal life insurance, SPUL, may be one of the most overlooked, misunderstood life insurance products available today and rarely recommended by traditional life insurance agents. However, expert Tax-Free Retirement Specialists use this product frequently with their clients

Single Premium Universal Life is an immediate issue, universal life policy, which combines a death benefit with a savings account. It’s an easy and efficient way for consumers to purchase coverage and transfer wealth to the heirs — TAX-FREE.  Purchased with one single premium payment, this product is designed for people who value added security, flexibility, and cash value with lifetime coverage.

How do you fund a single premium life insurance policy?

One area where a significant amount of SPUL policies are being used is to consolidate stray life insurance policies with lots of cash value where the owner has no plans for the cash value.  By simply using the funds from those policies as a lump sum into a new single premium universal life insurance policy the new policy is usually larger than the sum of the smaller policies and is now paid in full.

Why use a Single Premium Life Insurance Policy?

The SPUL insurance policy can help clients meet a variety of financial objectives.

• Single-premium life policies require only minimal underwriting and are a good choice for the elderly or those with some health issues.
• Ownership of a life policy by the beneficiary or a trust can “remove” the asset from the estate for estate tax purposes.
• Advanced estate and legacy planning.
• Insuring a key employee or a business continuation plan.
• Policy loans from the cash value TAX-FREE
• Some SPUL’s will accept additional premiums if you believe you might want to deposit additional money later to increase your benefit.
• Provides a simple and efficient way to purchase coverage and transfer wealth tax-free. 
• Immediate issue policy purchased with a single payment. 
• Provides a policy with a death benefit much higher than the payment itself.

Single premium life insurance cash value increases much faster than a policy with monthly or annual premiums because it is funded with the entire lifetime premium at the issue of the policy.  Just like other insurance policies, upon the death of the insured the proceeds of the policy go to the beneficiaries free of federal income or estate taxes.

Can it be used as an alternative to an annuity?

The big advantage of SPUL is that it passes the death benefit to your heirs tax-free (although there may be estate taxes to consider).  In many cases, those benefits also will pass quicker to heirs outside of probate, a real plus for larger estates.

Because the annuity’s $150,000 growth was tax deferred the beneficiary will have to pay tax on $150,000.  Life insurance is always transferred tax-free with zero taxes due to the federal government.

Additional Benefits to the SPUL owner

Since an SPUL premium is paid in full at policy issue the policy is planned to last the owner’s entire life time.  The cost of the insurance of the policy will be paid from the cash value and any interest gain.  The only way that the policy will not last the entire lifetime is if the owner were to take out a tax-free loan from the policy for their use and not pay the loan back.  As long as the loan is repaid back into the policy, the insurance policy will continue to last the owner’s entire lifetime.

SPUL’s are the least understood life insurance product by traditional life insurance agents today.  By talking with an expert Tax-Free Retirement Specialist they can discuss your specific goals you are seeking to accomplish and assist you in determining if this is a the best product choice for you.  Click here to find a local Tax-Free Retirement Specialist in your area.

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Houston, TX (PRWEB) October 23, 2012

What do railroad companies and pension plans have in common? How are airline pilots similar to retirement plans? Why should we thank teachers for the secret to lifetime income?

“Savior Retirement” finds informative and entertaining ways to educate and deliver intelligent answers. Baby boomers, those with current 401(k)s or any form of a defined contribution plan, or anyone that is concerned about generating lifetime will find the narrative in this book compelling and relevant.

Savior* Retirement walks the reader through the history of pension and retirement plans, through their evolution into the 401(k)’s, IRA’s, ESOP’s, etc. that we know today, and spotlights the next stage in retirement income. The real life stories of doctors, teachers, small business owners, and airline mechanics tell a meaningful story of the benefits and pitfalls of past and current retirement plans.

“Writing this book was a labor of love for all of us. Each of my co-authors brought their insight and years of experience to help guide our readers through the challenges of retirement planning,” said Joe Simonds, founder of Annuity Think Tank and co-author of “Savior* Retirement.”

Savior* Retirement: A Retirement Secret Every Baby Boomer Must Know brings together personal stories and decades of combined experience in an effort to help the reader determine how best to save his or her retirement nest egg and provide him or herself income through retirement.

Savior* Retirement is essential reading for anyone in or nearing retirement today.

About the Authors

Joe Simonds is the founder of Annuity Think Tank and in the past ten years; he has consulted with and assisted financial professionals in writing in excess of $1 billion in annuity production. Joe has had the opportunity to consult more than one thousand agents in growing their practice and has flown all over the country to assist advisors in educating clients on retirement income and has been a guest host on several radio shows as well.

Nathan Lee began his career in the financial services industry more than ten years ago as an independent financial advisor. He has held both series 6 and 63 licenses and has endeavored to provide his clients with the most tax-advantaged retirement solutions. He then joined Annuity Think Tank as a marketing consultant and recently accepted the position of Chief Marketing Officer.

Franco Devivo began his career in the retirement planning industry in 2005. In 2007, he took the opportunity to move overseas for three years to work as a cash-flow analyst for one of the world’s largest banks. In 2010, he returned to the U.S. to continue his work assisting financial professionals and their clients.

Jason Chaifetz entered the financial services industry after graduating from college and helped a national annuity distribution firm expand its annual sales to over $1 billion. After five years, Jason joined Joe Simonds to found the Annuity Think Tank.

James Cline has been providing invaluable assistance and a very unique perspective to successful advisors and clients nationwide for nearly 10 years. He has served on both the wholesale and retail side of the financial services industry.

About Annuity Think Tank

Annuity Think Tank is an independent educational, research, and retirement marketing group specializing in annuities and retirement income. Annuity Think Tank’s vision is to be the first place financial professionals and consumers come to for innovative annuity solutions, unbiased annuity education, annuity research, and the most comprehensive annuity information on the web. Please visit the main site, AnnuityThinkTank.com to view the Think Tank Network of website and to learn more about annuities, basic to advanced annuity concepts, and annuity calculators and white papers.

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