Client Passing on CD to Heirs Might Like Single-Premium Life Policy

  • Originally published May 20, 2014 , last updated April 3, 2018
  • Ameritas
Client Passing on CD to Heirs Might Like Single-Premium Life Policy

With today’s low interest rates, a single-premium life insurance can be a better vehicle to accomplish a client’s goal of passing on money to a loved one than a certificate of deposit.

Senior Market Sales can help you design cases to see if an Ameritas Life Corp. single-premium product would be a good solution for your clients. Rolling a CD into a single-premium life policy can be an attractive option for a client who doesn’t need the CD as an emergency fund.

With a single-premium policy, the client can:

  • Still access the money
  • Earn a competitive, tax-deferred interest rate
  • Grow the asset’s cash value
  • Avoid passing income taxes estate taxes on to heirs

A grandparent intending to pass on a $100,000 CD to two grandsons could expect each grandchild to receive roughly $40,000 after taxes. But put that money into a single-premium life insurance policy and double the death benefit, and each grandchild could get $100,000 tax free.

Call a life marketing consultant at 1-877-888-0166 to see how this sales concept works in practice or to design a case for a client. We’ll show you this exciting Ameritas product and others.