Single-premium life insurance beats CDs and money-market accounts for long-term wealth. The product grows tax-free, lets you withdraw up to twice the account value tax-free for nursing-home costs, and can boost your bequest to heirs by up to 200 percent.
Chapters
Many of us keep money in a CD or money market account, a cash reserve that we keep safe from investment risk. And if we never need any of this money, we intend to leave it to our family, our college, our church, or our favorite charity. But this money is earning less than the rate of inflation, so it's actually losing value every year. What's more, the little interest we do earn on this money is all taxable. Which further diminishes the value of this money. But now there's an alternative to keeping this money in a bank account. An alternative that can earn a higher rate of interest without taxation, that allows you to withdraw up to double your account value to pay for assisted living or nursing care tax-free, and that can increase your bequest by as much as 200%. This alternative is made possible by Internal Revenue