Take Money from 401k to Single Pay Life Insurance

Discussion in 'Life Insurance Forum' started by shooter, Nov 11, 2015.

  1. shooter
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    shooter Super Genius

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    Good morning everyone.
    I enjoy the banter on this board and the good advice.
    I have reached the ripe ole age of 59 and 1/2.
    Having some money in a 401k I have thought about making
    a withdrawal and single paying a SPWL or GUL.

    Yes there will be taxes, but would my commission and
    saved term premium I'm paying off set that over time?

    I have looked at my Compulife and Midland National shows
    up as the least expensive.
    Not a favorite of mine.

    Just throw some thoughts at me and I look forward to
    your idea's and opinions.
    Shooter
     
  2. pdoyle
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    pdoyle Super Genius

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    One America will allow you to move qualified money over to a SPWL policy. It's for leveraging LTC benefits.
     
  3. Larry Tew
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    Larry Tew Guru

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    On the face of it, I wouldn't want a single premium because of it being a Modified Endowment Contract. A large single withdrawal may subject some of the withdrawal to being taxed in a higher bracket.

    As a starting point, I would look at periodic withdrawals into a multiple-premium policy (10-pay for example) or whatever it takes to be a non-MEC. You never know 15 or 20 years from now (assuming you live that long) how handy a non-MEC income stream from the policy might be.
     

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