How Insurance Works

Insurance Information : How to Buy Single-Premium Life Insurance

I’m Seann McWhorter, agency principal of Insure
Right Insurance Agency, located in Lehi, Utah. We’re here to talk about insurance ins and
outs, and specifically how to buy single premium life insurance. Where do you obtain a single
premium whole life insurance policy? Well, first I would recommend that you contact an
experienced, knowledgeable professional life insurance agent. That life insurance agent
will know which companies will offer a single premium life insurance policy, and how to
structure that policy appropriately so you avoid many of the pitfalls that come with
a single premium life insurance policy, such as making a modified endowment contract, which
would destroy all of the tax benefits of a life insurance policy.

Reader Comments

  1. You stated that if the policy became a MEC if would destroy all the tax advantages…NOT true. That only applies if you borrow from the policy…those loans would be taxable, however the death benefit would be free of Federal Taxes and pass to your heirs or beneficiaries TAX FREE in most cases (assuming there was not a huge estate.

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