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Financially savvy younger individuals understand that while their parents may have raised them, the financial assistance doesn’t have to end. Without accepting another dime from your parents, you can guarantee yourself an inheritance. Not only does the 401 Kaye concept allow you to use life insurance for your own retirement, but it ensures your parents the freedom of a comfortable retirement without worrying about having enough left to leave behind.
You can create your own inheritance by taking a life insurance policy on your parents, with out the market risk of any financial tool in your portfolio. While obviously you don’t wish for your parents’ demise, you both understand this is a win-win situation because the death benefit is guaranteed.
Consider this scenario: A 45-year old man and his wife earn $120,000 a year. They save $20,000, of which half goes to buy stocks, bonds and mutual funds, and the other $10,000 is used to buy a $700,000 policy on the man’s 69-year old parents. The man plans to retire around age 70, at which time his parents will be 94 years old. While he doesn’t know if his parents will still be alive, it’s a good assumption that they may die around that time. This man knows that regardless of what happens with the markets, he and his wife will ultimately have $700,000 at some time during their retirement years if they continue making premium payments until his parents’ demise. Even if the policy lapses or is surrendered before a death benefit is paid out, the policy owner receives the benefit of financial protection from a mortality event occurring during the time the policy was in force.
Certainly, every family should have life insurance to provide financial security to replace the economic benefit of one’s life, but many younger people are confused about whether they should purchase term insurance or universal life insurance. Howard Kaye recommends buying term while you are young so that you have a reserve to purchase insurance on your parents.
Rather than depending on the ups and downs of the market, reward your hard work and forethought with a guaranteed death benefit. Call Howard Kaye to create the financial security you desire for your future.
Guaranteed payment of life insurance proceeds are based upon the claims paying ability of the insurance carrier and making the required premium payments until the death benefit is paid.
For illustrative purposes only. Actual results will vary based upon individual circumstances.
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