can I get insurance on spouse w/.out their signature
Total Comments: 3
Posted: Thu Jul 31, 2014 08:09 pm Post Subject:
NO -- at least not lawfully in almost all states.
Posted: Fri Aug 15, 2014 02:04 am Post Subject: Question
Age 45/ no medical condition - I just have money in the bank earning 0.0 % and no plan to use it in the near future... Can I. Buy a plan (which plan ?) and enter that money as initial payment... So I can earn some $ (interest on the plan..) and if I am alive at 60 then receive that money back plus interest???
Posted: Fri Aug 15, 2014 04:19 am Post Subject:
Most life insurance agents will try to get you to purchase either Indexed or Variable Universal Life policies, with the promise that you can take the money out "tax-free". The problem with that is if you take out more than the cost basis (i.e., what you paid in) and the policy dies before you do, you will have a taxable event on the excess amount taken, and if you don't have the resources to pay the taxes, you're in big trouble with the IRS.
Therefore, you would be ill-advised to purchase any traditional life insurance with the objective of taking all the money out at age 60. Much of what you put in will be used to pay the cost of insurance and other policy charges if you don't pay premiums.
Instead, you could look to either an annuity (fixed, indexed, variable) or an endowment life insurance policy. Both have major tax consequences if you attempt to take any of the money prior to age 59-1/2 from either product -- a 10% penalty on gains, which must be take first. The interest earned will be taxable in either case, even after age 59-1/2.
Assuming you have at least $5,000 per year in earned income, you could transfer $5,000 per year into a Roth IRA with the custodian of your choosing. Mutual funds, variable annuity, indexed annuity, stocks & bonds, bank CDs. All of the money you eventually withdraw, including gains, will be received tax free. The advantage of an annuity (either indexed or variable) is that you can annuitize at any age and receive a monthly tax-free income for life.
The payment amount will depend on how much you've put in, and how much gain you obtain, and your age at the time you annuitize. The more total money in your account and the older you are, the larger your payment will be. You can also withdraw the money you have put in without penalty prior to age 59-1/2 as long as the account has been open a minimum of 5 years. After age 59-1/2 you can take out any or all of the money tax-free. If you were to die prior to annuitizing, your beneficiary will receive the money.
You can contact me for more information. Click on the "Send me your questions" link below.
Posted: Thu Jul 31, 2014 08:09 pm Post Subject:
NO -- at least not lawfully in almost all states.
Posted: Fri Aug 15, 2014 02:04 am Post Subject: Question
Age 45/ no medical condition - I just have money in the bank earning 0.0 % and no plan to use it in the near future... Can I. Buy a plan (which plan ?) and enter that money as initial payment... So I can earn some $ (interest on the plan..) and if I am alive at 60 then receive that money back plus interest???
Posted: Fri Aug 15, 2014 04:19 am Post Subject:
Most life insurance agents will try to get you to purchase either Indexed or Variable Universal Life policies, with the promise that you can take the money out "tax-free". The problem with that is if you take out more than the cost basis (i.e., what you paid in) and the policy dies before you do, you will have a taxable event on the excess amount taken, and if you don't have the resources to pay the taxes, you're in big trouble with the IRS.
Therefore, you would be ill-advised to purchase any traditional life insurance with the objective of taking all the money out at age 60. Much of what you put in will be used to pay the cost of insurance and other policy charges if you don't pay premiums.
Instead, you could look to either an annuity (fixed, indexed, variable) or an endowment life insurance policy. Both have major tax consequences if you attempt to take any of the money prior to age 59-1/2 from either product -- a 10% penalty on gains, which must be take first. The interest earned will be taxable in either case, even after age 59-1/2.
Assuming you have at least $5,000 per year in earned income, you could transfer $5,000 per year into a Roth IRA with the custodian of your choosing. Mutual funds, variable annuity, indexed annuity, stocks & bonds, bank CDs. All of the money you eventually withdraw, including gains, will be received tax free. The advantage of an annuity (either indexed or variable) is that you can annuitize at any age and receive a monthly tax-free income for life.
The payment amount will depend on how much you've put in, and how much gain you obtain, and your age at the time you annuitize. The more total money in your account and the older you are, the larger your payment will be. You can also withdraw the money you have put in without penalty prior to age 59-1/2 as long as the account has been open a minimum of 5 years. After age 59-1/2 you can take out any or all of the money tax-free. If you were to die prior to annuitizing, your beneficiary will receive the money.
You can contact me for more information. Click on the "Send me your questions" link below.
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