Paul Pent & Associates - Retirement Advice Blog

Financial Insight Blog

It's a simple question and  will possibly save you hundreds of thousands of dollars. Let's assume you are a 65 year old man and you would like your wife or kids to have 1 million dollars guaranteed upon your death. What would you do? You have a couple of options...

1. You could put $1,000,000 in a checking account or CD or some type of savings account.

2. You could buy a $1,000,000 policy that guarantees level premiums for life, even if you live to be 120 years old.

Problems with option 1 are many. First off, it's way too expensive! Who wants to have to keep 1 million dollars tied up for an unknown amount of time? Second; interest rates are low. Third; banks fail and if not structured correctly, your money is not guaranteed.

So here's the solution. At age 65, instead of putting aside 1 million dollars all you need is $300,000 (if you are in reasonable health). That $300,000, when structured correctly can fund what's called a GUL. All top life insurance have GUL's and the price can be shopped so it may be a less. This seems very simple but I am amazed at how many people are floored when they see this for the first time. They love it. Obviously this method can be used to provide any amount for your spouse or loved ones. Contact us for your free quote or call us at 1-877-797-PAUL


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