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Question
HI, I AM A 67 YEAR OLD MALE,68 THIS DECEMBER. MY BANK 5/3 CONNECTED TO GREAT WEST FINANCIAL THINKS I SHOULD BUY A SINGLE UNIVERSAL LIFE POLICY. IF I DEPOSIT 100,000.00 MY BENIFICUARY ON MY DEATH WOULD RECEIVE 225,000.00. POLICY WOULD ALSO GAIN 2.25 % INTEREST PER YEAR. I WOULD BE ABLE TO CASH IN THE POLICY ANYTIME IF NEEDED WITH NO PENALTY.  WHATS THE CATCH ?

Answer
Dear George,

I have not seen the actual proposal, so my answer is that this is mathematically possible. However, I doubt that the 2.25% is guaranteed against the entire $100,000 and for the whole period.

In today's financial market this is a fair offer, if your goals are to hide undistributed gains from unnecessary taxation and to transfer wealth to your heirs. However, be sure to take into account gift and estate taxes, if your estate is considerable.

Willard R. Brumbaugh, LUTCF
CA License 0374776
(888) 792-2379

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Willard R. Brumbaugh, LUTCF, CSFP

Expertise

I can handle questions concerning life insurance, it`s tax implications, how to determine what is appropriate, and how it fits in one`s estate and retirement planning.

Experience

For 2 1/2 years I was an expert on AskMe.com, where for most of that time I was ranked #1. I have been a moderator (instructor) for the Life Underwriters Training Council. I have been licensed since 1969. Organizations I belong to: National Association of Insurance and Financial Advisors - California and the Inland Empire Estate Planning Council. I hold the professional designation of Life Underwriters Training Council Fellow.

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