Thursday, January 8, 2015

Advantages of Lump Sum Life Insurance Policies

As chief executive officer of Allied Insurance and Financial Services, Inc., in Benton, Arkansas, since 2009, Samuel Talbert operates an agency regularly recognized as one of the nation’s top insurance agencies. In addition to his work with Safe Money Advisors, PLLC, and other insurance companies, Samuel "Sam" Talbert works to provide health, annuity, and life insurance planning throughout Arkansas and surrounding areas.

Single-premium life (SPL) insurance policies differ from more common life insurance policies in that policy owners pay lump sums to fully fund the policies rather than making a number of payments over extended periods. Not only do SPL policies usually provide good coverage, they also help owners transfer wealth tax-free. Fully funded SPL policies increase in value much faster than traditional life insurance policies. A minimum 3 percent guaranteed interest rate gives the heirs a larger death benefit than the payment itself. In some cases, policy owners make additional lump payments on the policies to further increase the value. The policies can also pay for long-term care and other unexpected expenses before death while allowing the remaining policy amount to be paid to dependents and heirs, tax-free.