Archive for March, 2010

It’s not complicated, but the math is stunning. A 45 year old female doctor wants to know, “what would it cost me to guarantee I leave a million-dollar legacy?” (her Mom had just died leaving a modest estate).

Nearing her peak earning years she said, “And let me pay it off in 10-years, like an expensive car, I don’t want to be paying on it when my kids hit college. I want it done, paid off.”

I showed her a $1 million-dollar Joint, 2nd-to-die policy for she and her 50 yr old husband would cost $2,500 monthly ($30K) for ten years – $300K total. Expensive? Yes – but look closer at the numbers. At age 56, she could change her mind, cancel it and put $358K back in her pocket – $58 more than her total premiums paid – but lose the now $1.3 million death benefit.

Of, course, she’s more likely to live into her 80s and die around 90 – where she’d now have a (without paying any further premiums) $7 million Legacy death-benefit – or cancel the policy for $6 million in cash.

The $2,500 monthly for ten years was more than she wanted to spend. So, she opted instead for a one-time only Single-Premium of $180,000 on her life. It immediately guaranteed her $1,000,000 legacy (5.5 times the premium), and a $1.9 million legacy @ age 90, or $890K cash).

Nothing can immediately leverage you charitable gifts, and create an instant Legacy like the right Life Insurance. What legacy could you leave? What legacy will you leave?


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